So, like if you make a debit transaction that is on credit you put it in A/R but then you need to credit the sales with the same amount, but then you got to Debit the COGS with the cost of the actual item and off set it with a credit that is Merchandise Inventory. Now if dude buys it under the terms 5/10 n/30 that means that he's got a good five solid days (including weekends if it were my co, bitches) to cash in on the 10 percent disco that I am so willing to give, but if you fail to do that then you got 30 days to pay the net which is what the shit cost without the disco and the cost would be what you pay not what I pay for the shit to be sold in my store. But then if jerk face decides that the shit I send him is the wrong colour I then have to Credit his A/R and debit my Sales Returns and Such with the retail amount and then figure out the cost and debit the merch and credit the COGS. And then hopefully dude will pay on time to cash in on the 5 percent discount coz that would be so good for him and the savings would be so awesome he would want to shop more at my shop so if he pays within 5 days well then I would Credit the A/R account and Debit the cash but the cash would be like 5 percent less and off set with another debit in the Sales Discount Account and the two have to total the A/R.
That has been my last 5 hours. Drilling this shit into my head.
Don't even get me started on LIFO, FIFO and WA?
Bleah.
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5 comments:
I got a word for you: kiting
Seems to me as though you got your discounts mixed up in there somewhere, as the 10% discount became a 5% discount... Otherwise it all makes sense...
For those of you following at home:
A/R: Account Receivable
COGS: Cost Of Goods Sold
LIFO: Last In First Out (Stack)
FIFO: First in First Out (Queue)
WA: whaaaa?
Yup thats right dave. People, its actually 5 percent off over 10 days. Not the other way around.
(dammit and I was doing so good!)
Oh and WA is Weighted Average. Meaning they add up all the different costs of stuff and divide them up by the number of units. so you get like $2.30 per unit instead of like 2.50 for these 10 and 2.00 for these ones...
And I am posting anonymously since I would start actually NOT studying like I am supposed to.
Gwynabella
Yup thats right dave. People, its actually 5 percent off over 10 days. Not the other way around.
(dammit and I was doing so good!)
Oh and WA is Weighted Average. Meaning they add up all the different costs of stuff and divide them up by the number of units. so you get like $2.30 per unit instead of like 2.50 for these 10 and 2.00 for these ones...
And I am posting anonymously since I would start actually NOT studying like I am supposed to.
Gwynabella
FUCK how does that happen??!??
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