Table of Contents
Introduction to Accounting I An Interactive Case Approach
Assignment Due Today
Assignment Due Today (continued)
Today’s In-Class Activities
Internal Controls
Purchasing mdse.
Selling mdse. on account
Good internal control
Objectives of Case #3-1 “J & J Corp.Purchase of a Retail Store”
Case # 3-1 J&J Corp.: Purchase of a retail store
Recall: Economic Decision Making
The goal for J & J Inc...
The problem...
Alternatives...
Potential outcomes...Alt. 2
Additional Quantitative Data
Additional Qualitative Data
Other decisions...
Accounts receivable
Turnover
Days sales outstanding
How can you decide if your sales terms are effective?
Question
Accounting for bad debts
Example: New Company in Year 1
% of Sales Method (I/S Method)
% of Sales Method - Year 1
Aging Method (B/S Method)
Aging Method- Year 1
Under both methods...
What happens in Year 2?
% of Sales Method- Year 2
Aging Method- Year 2
Both Methods
PPT Slide
Prepare for Group Presentations
Assignment for Next Time
Objectives of Case #3-2 “Jake’s Lumber and Hardware”
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