Introductory Bookkeeping Arranged for Use in the Classes of the Commercial Depa
Introductory Bookkeeping Arranged for Use in the Classes of the Commercial Depa
Fred Charles Weber
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Post (two accounts to page) and take a trial balance. Re- member that shipment or consignment accounts represent mer- chandise and must not be confused with the personal accounts of the parties to whom shipments are made or from whom consign- ments are received. Make financial statements. For what are shipment accounts debited? Credited? Shipment accounts, at the time of closing the books, may show the following conditions : The shipment made and all costs charged but no returns received, in wh...ich case the shipment is generally considered a resource inventory for the full amount of the cost. The shipment made and all costs charged and the returns for a partial sale of the shipment credited, in which case the unsold portion is generally treated as a resource inventory at cost, and this inventory added to the credit causes the account to show either a loss or gain on the sold portion (same as merchandise account). The shipment made and charged with all the costs and credited with the entire net sales, in which case the shipment shows a loss or gain.
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