Chapter 14 Inventory Services Mc GrawHillIrwin Copyright 2013

Inventory & Services Merchandise inventory includes all goods owned by the business and held

Peachtree Tips Chapters 12 and 13 must be completed before starting Chapter 14. In

Backups and Saved Files, p. 427 Backup (. ptb extension) Excel (. xlsx) and

Merchandise inventory, p. 549 Merchandise inventory includes all goods owned by the business and

Merchandising business, p. 549 Retail stores that resell goods and/or perform services. 14 -7

FIFO, p. 549 The FIFO (first in, first out) inventory method assumes that the

LIFO, p. 549 The LIFO (last in, first out) inventory method assumes that the

Inventory Adjustment, p. 561 In Chapter 14, you enter an inventory adjustment for damaged

Going to the Net, p. 573 Access the Small Business Knowledge Base website at

Analysis Question, p. 576 Which one of Cynthia’s Service Merchandise items shows the highest

Assessment Rubric, p. 577 Date 1/30 1/31 Transaction Two tool kits purchased from Carson

Online Learning Center Ø Go online to www. mhhe. com/yacht 2012 for additional resources.

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Inventory & Services Merchandise inventory includes all goods owned by the business and held for sale. For tracking merchandise inventory, Cynthia’s Service Merchandise uses Account No. 12000, Merchandise Inventory. Peachtree uses a perpetual inventory system. In a perpetual inventory system, a merchandising business updates inventory each time an item is purchased or sold. Inventory calculations include FIFO (first in, first out), LIFO (last in, first out), and average cost methods. 14 -2

Peachtree Tips Chapters 12 and 13 must be completed before starting Chapter 14. In Chapters 12 -15, Peachtree uses the average inventory method. 14 -3

Backups and Saved Files, p. 427 Backup (. ptb extension) Excel (. xlsx) and Adobe (. pdf) KB Page Nos. Chapter 14 Begin. ptb 1, 091 KB 559 Chapter 14. ptb 1, 119 KB 572 32 KB 572 -573 993 KB 575 30 KB 576 Exercise 14 -2_Cash Receipts Journal. pdf 7 KB 576 Exercise 14 -2_Purchase Journal. pdf 6 KB 576 Exercise 14 -2_Cost of Goods Sold Journal. pdf 6 KB 576 Exercise 14 -2_Inventory Adjustment Journal. pdf 5 KB 576 Exercise 14 -2_Inventory Profitability Report. pdf 6 KB 576 Exercise 14 -2_General Ledger Trial Balance. pdf 6 KB 576 Chapter 14_CL_VL_CGSJ_IAJ_IPR_GLTB. xlsx Exercise 14 -1. ptb Exercise 14 -2_CRJ_PJ_CGSJ_IAJ_IPR_GLTB. xlsx 14 -4

Glossary of Terms Chapter 14 14 -5

Merchandise inventory, p. 549 Merchandise inventory includes all goods owned by the business and held for resale. The inventory account for Cynthia’s Service Merchandise is Account No. 12000, Merchandise Inventory. 14 -6

Merchandising business, p. 549 Retail stores that resell goods and/or perform services. 14 -7

FIFO, p. 549 The FIFO (first in, first out) inventory method assumes that the items in the beginning inventory are sold first. 14 -8

LIFO, p. 549 The LIFO (last in, first out) inventory method assumes that the goods received last are sold first. 14 -9

Inventory Adjustment, p. 561 In Chapter 14, you enter an inventory adjustment for damaged merchandise. 14 -10

Going to the Net, p. 573 Access the Small Business Knowledge Base website at http: //www. bizmove. com/finance/m 3 d 3. htm. Scroll down the window to Merchandise Inventories: Perpetual Inventory. Answer these questions about perpetual inventory. 1. What is a perpetual inventory at retail? 2. When is a physical count of inventory necessary? 14 -11

Analysis Question, p. 576 Which one of Cynthia’s Service Merchandise items shows the highest gross profit percentage? Why? The Inventory Profitability Report shows that wall coverings show the highest gross profit percentage at 70%. The reason is that wall coverings are purchased for $30 and sold for $100, a 70% profit. (The cost of the item and sale price of the item is shown on the Maintain Inventory items window; Item ID, 002 wall. ) 14 -12

Assessment Rubric, p. 577 Date 1/30 1/31 Transaction Two tool kits purchased from Carson Phillips Tools on 1/27 were damaged by the owner. Cash sales in the amount of $4, 752, ($4, 400 plus $352 sales taxes) were deposited at Caliber Bank: 20 tool kits, $1, 700; 18 hardware sets, 2, 700. Navigation Center/Module Inventory & Services; Inventory Adjustments Inventory Customers & Sales, Receive Money From Customer Accounts Receivable Task Window Inventory Adjustments Journal Dr. /Cr. Inventory Adjustment Journal Dr. 50500, Cost of Sales-Tools, $60 Receipts Cr. 12000, Merchandise Inventory, $60 Cash Receipts Journal Dr. 50500, Cost of Sales-Tools, $600 Dr. 50000, Cost of Sales. Hardware, $900 Dr. 10200, Caliber Bank, $4, 752 Cr. 23100, Sales Tax Payable, $352 Cr. 40200, Sales-Tools, $1, 700 Cr. 12000, Merchandise Inventory, $600 Cr. 40000, Sales-Hardware, $2, 700 Cr. 12000, Merchandise Inventory, $900 14 -13

Online Learning Center Ø Go online to www. mhhe. com/yacht 2012 for additional resources. Link to Student Edition, select Chapter 14. o Interactive Testing o Glossary of Terms o Feature Quiz o Narrated Power. Points o Assessment Rubric o Going to the Net o QA Templates 14 -14