• How does the sale of inventory affect the financial statements?
• The effect of inventory purchase transactions (within the discount period) and sale of inventory on the Statement of Cash Flows.
• What is the Allowance method for reporting Accounts Receivable?
• What type of account is the Allowance for Uncollectible Accounts?
• How do you calculate Net Realizable Value of Accounts Receivable?
• FOB shipping point and FOB destination who pays for shipping costs and how are these costs reported in the financial statements? How do we record transportation-in costs under FOB shipping point? How do we record transportation-out costs under FOB destination?
• What events/transactions increase and what events/transactions decrease the Inventory account balance?
• Purchase of merchandise inventory from a supplier on account, under terms like 2/10, n/30 (be able to explain what 2/10, n/30 means)