Standards: Reading Time: 5 mins ALI Understand the accounting cycle for merchandise businesses. • LO: To learn about accounts involved in the process of purchase • SC: I can name accounts involved in purchase Prompters: 1. What accounts will be affected on purchase of posters on credit? 2. What type of business is this? process. • I can identify the purchase process. 3. How can they expand the business? • I can label the merchandising cycle with all sales and some 4. List two problems in collecting money from customers. purchase terminology • Key Words: Purchase requisition, Purchase order. Exploring the Real World of Business ANALYZING PURCHASES Suncoast Motion Picture Company If you were searching for The Lord of the Rings: The Return of the King DVD, would you care if it was new or used? In the DVD business, used is often as good as new. Sales of "previously viewed" DVDS have become a huge source of revenue for retailers like Suncoast Motion Picture Company, attracting customers by providing more choices. Suncoast Motion Picture Company purchases used DVDS for resale. Customers either sell them to Suncoast for cash or trade in older titles for new or different ones. Suncoast stores also offer movie memorabilia like posters, T-shirts, and books. Movie posters and T-shirts are purchased from various commercial printers. What Do You Think? If Suncoast purchased 5,000 posters from a commercial printer on credit, which accounts do you think would be affected?
Standards: Reading Time: 5 mins ALI Understand the accounting cycle for merchandise businesses. • LO: To learn about accounts involved in the process of purchase • SC: I can name accounts involved in purchase Prompters: 1. What accounts will be affected on purchase of posters on credit? 2. What type of business is this? process. • I can identify the purchase process. 3. How can they expand the business? • I can label the merchandising cycle with all sales and some 4. List two problems in collecting money from customers. purchase terminology • Key Words: Purchase requisition, Purchase order. Exploring the Real World of Business ANALYZING PURCHASES Suncoast Motion Picture Company If you were searching for The Lord of the Rings: The Return of the King DVD, would you care if it was new or used? In the DVD business, used is often as good as new. Sales of "previously viewed" DVDS have become a huge source of revenue for retailers like Suncoast Motion Picture Company, attracting customers by providing more choices. Suncoast Motion Picture Company purchases used DVDS for resale. Customers either sell them to Suncoast for cash or trade in older titles for new or different ones. Suncoast stores also offer movie memorabilia like posters, T-shirts, and books. Movie posters and T-shirts are purchased from various commercial printers. What Do You Think? If Suncoast purchased 5,000 posters from a commercial printer on credit, which accounts do you think would be affected?
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter8: Receivables
Section: Chapter Questions
Problem 8.1MAD: Accounts Receivable Turnover and Number of Days Sales in Receivables Analyze and compare Amazon.com...
Related questions
Question
I need answers of 2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,