A finished ACC-240 Topic 6 merchandising entry set example, journalizing purchases, freight, returns, discounts and two-part sales under a perpetual system, with gross profit derived at the end. Searches like "acc 240 topic 6 assignment example", "acc240 topic 6 sample" and "acc-240 topic 6 example" land here.
What a finished ACC-240 Topic 6 merchandising entry set looks like
The finished set records a short sequence of purchases and sales under a perpetual system, with illustrative amounts that reconcile. Each purchase increases merchandise inventory directly, freight on incoming goods is added to inventory cost, and a return to the supplier reduces both inventory and accounts payable. Payment within the discount period credits inventory for the discount taken, which is the entry students most often place elsewhere. Every sale is recorded twice: once at selling price to revenue and receivables, and once at cost from inventory to cost of goods sold. A running inventory ledger sits beside the journal so the balance can be followed after each event. The set ends with a partial multi-step income statement showing net sales, cost of goods sold and gross profit.
How an ACC-240 Topic 6 example is structured
The set is organized as a journal and an inventory ledger running in parallel. Its first part states the credit terms and shipping terms that govern the transactions, since the discount and the freight treatment both depend on them. The purchase side follows: the purchase on account, the freight charge, the return and the discounted payment, each journalized with a line explaining its effect on inventory cost. The sales side comes next, each sale recorded as a revenue entry and a cost entry, with the sales return reversing both where goods come back in usable condition. The inventory ledger beside the journal shows units, cost and balance after every event. A short reconciliation proves the ending inventory figure from the ledger against the journal. The set closes with net sales, cost of goods sold and gross profit presented in multi-step form.
Terms stated before any entry
Credit terms and shipping terms are set out first, because whether a discount applies and who carries the freight both follow from them directly.
Freight and discounts inside inventory cost
Freight paid on incoming goods raises inventory cost and a discount taken on payment lowers it, so the asset carries what the goods actually cost.
Every sale recorded twice
A revenue entry at selling price and a cost entry at purchase cost appear for each sale, because a perpetual system updates inventory the moment goods leave.
A ledger running beside the journal
Units, cost and balance are tracked after each event, which confirms that ending inventory follows from the entries rather than from a count alone.
Gross profit in multi-step form
The closing statement extract separates net sales, cost of goods sold and gross profit, showing where the merchandising cycle lands on the income statement.
Where marks go in ACC-240 Topic 6
The sale recorded once is the most frequent error here, and it is simply wrong. Posting revenue without the matching cost entry leaves inventory overstated and cost of goods sold at zero, so gross profit equals sales. Freight on incoming goods charged to an expense account understates inventory cost, while freight on outgoing goods added to inventory overstates it, and sections usually test both. Discounts taken on payment are often credited to a separate purchase discounts account, a periodic-system habit carried into a perpetual problem where the credit belongs to inventory. Returns that reduce payables without reducing inventory break the ledger balance at that line. Sets presented with no inventory ledger beside the journal lose marks in many sections because the ending balance cannot be traced, even where the figure is right.
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ACC-240 Topic 6 questions, answered
Why does a perpetual system record two entries per sale?
Because it keeps the inventory account current at all times. The first entry records what the customer owes at selling price; the second moves the cost of the goods out of inventory and into cost of goods sold. A periodic system skips the second entry during the period and works out cost of goods sold from a count at the end instead.
Where does inventory appear on the statements?
Unsold inventory is a current asset on the balance sheet, carried at cost. Once goods are sold, their cost leaves the balance sheet and becomes cost of goods sold on the income statement, where it is subtracted from net sales to give gross profit. The same purchase can therefore sit on either statement depending on whether it has been sold by the reporting date.
What does FOB shipping point change?
Who owns the goods in transit and who pays the freight. Under FOB shipping point the buyer takes ownership when goods leave the seller, so the buyer records the purchase then and adds the freight to inventory cost. Under FOB destination the seller owns the goods until they arrive and treats its own delivery cost as a selling expense.