0
Over-the-counter indicates to me that this is a type of Merchandising business. The accounting is really Merchandising Accounting. Accounts such as Revenue, Cost of Goods Sold, Inventory, all come into play.
Merchandising company's also use such things as FIFO or LIFO inventory to keep track of the merchandise they are selling.
Some examples of a Merchandising Company is Wal-Mart, Fry's Electronics, Grocery Stores, Clothing Stores, etc. These companies purchase "Inventory" at whole-sale prices, mark up the price to Retail, sales the merchandise and make profit off the difference. Whole-Sale price would be the COGS (cost of goods sold).
What else can I help you with?
Is there unearned revenue in accrual accounting?
Yes unearned revenue is only available in accrual accounting because in cash accounting sales is considered as sales as soon as cash is received.
Why is revenue not cash in accrual accounting?
In accrual accounting not always all sales are made on cash basis that's why sales are shown when sales are made and not when actual cash received that;s why cash is not shown b'coz all cash is not received at the time of sales.
How does sales affect the accounting equation?
acoounts receivable and capital
Break Even Sales - Formula in Cost Accounting?
Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales
What is the answer to accounting conservative rule?
Delay amount of sales recognized delay date of recognizing sales Accelerate recognizing expenses Be conservative on profit
Is there unearned revenue in accrual accounting?
Yes unearned revenue is only available in accrual accounting because in cash accounting sales is considered as sales as soon as cash is received.
Why is revenue not cash in accrual accounting?
In accrual accounting not always all sales are made on cash basis that's why sales are shown when sales are made and not when actual cash received that;s why cash is not shown b'coz all cash is not received at the time of sales.
What is the accounting entry for sales return under warranty?
The accounting entry for sales return under warranty is the accrued warranty liability. This entry is written under warranty expense.
How does sales affect the accounting equation?
acoounts receivable and capital
Describe cash received from cash sales?
accounting entry for cash received for the sales of office uniform
Can office and tax accounting software print reports that allow a company to track sales?
Yes, most office and tax accounting software will save your printed reports and will allow the tracking of sales.
Sales revenue is recognized in the period in which?
Under the Accruals basis of accounting, Sales Revenue is recognised when it is earned and not when received.
What is carriage outwards in accounting?
Some expense that is occur during sales
Four departments of a railroad company?
accounting, operations, maintenance, sales
How enter company's tin number in sales vouchers in tally?
for accounting
What is return inwards in accounting?
Return Inwards in accounting means SALES that was returned in your business by your customers maybe because there's something wrong or the customer is not satisfied with the product. SALES is your revenue and is credit in nature. RETURN INWARDS / SALES RETURN is the opposite of SALES, therefore, it's an expense and is debit in nature.
Break Even Sales - Formula in Cost Accounting?
Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales
