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5-9

COMPOF{ENTSOF NET INCOME (FROM OPERATIONS) (a) Net Sales (b) {ost qf SppdsSold" (c) GrossProfit on Sales (d) -OperatingExpenses (e) Net Income(Loss)fium Operations

$feqs; X X X X
X

posT qol coMr8]\EN:rs,oq gry.qqpps q
(a) Inventory,Beginningof Period (b) +Costof QqodsPurchased (c) Costof GoodsAvailablefar Sale (d) - Igye-nJory" of Period End (e) Costof GoodsSold

FJpnsi
X +X X -*J

-:x
Stepsi X

qpMpoNENrs cp$r pT Gpppspr{nclusEp
(a) Purchases (b) - (Purchase Returns& Allowances DiScpq-$ts) t Purchpses (c) Net Purchases (d) + Trpspo_rt4tjon ln (e) Costof GoodsPurchased

+

+x

X X

* Perpetual inventorysystems havea cost of goodssold accountthat continuously accumulates costsas itemsare sold. In a periodic inventorysystem, this amountis calculated the endof period. at

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YqqALS5-3 ACCOUNTS USED BASICMERCHANDISING IN TRANTSACTIONS WITII A FENPETAAL INYENTORY SYSTEM
REYENUES & CONTRA.REV.

ASSETS

LIABILITIES

Cash

Dr.Bal. I

Accounts Pavable Cr. Bal.

Sales

I cr.eat.

Accounts Receivable

SalesReturns& Allowance

Dr.Bal. I

cosT
Costof Goods Sold Dr. Bal.

Dr.Bal. I

Merchandise Inventorv

Sales Discount

Dr.Bal. I

EXPENSE Delivery

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