Gross Margin Method Definition

What is Gross Margin Method? A method used to estimate the value of inventory, by which firms estimate their ending inventory without taking an actual count. It is based on the firm’s gross margin percentage.

Gross Method of Recording Sales Discount

What is the gross method of recording sales discounts? A method or recording sales discounts, in which the sales and the receivable are recorded at the gross amount before any discount is called the gross method of recording sales discount.

Gross method of recording purchase discounts

What is the gross method of recording purchase discounts? Gross method of recording purchase discounts is the method in which the purchase and the payable are recorded at the gross amount, before any discount. Explanation The gross method of recording purchase discounts records the purchase and the payable at the gross amount before any discount. …

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Goods on Consignment

How to Define the term Goods on Consignment? Goods on Consignment are those goods held by a firm for release, but which title remains with the manufacturer or owner of the product. Explanation In effect, the merchandiser has agreed to display the goods but, for a variety of reasons, is not willing to purchase them. …

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Gains Term Definition

What is meant by Accounting Term “Gains”? Gains may be defined as a firm’s increase in equity (not assets) during a set period from all activities ( except for revenues and investments by owners).

Goods or Merchandise

Definition The things which are manufactured for selling purpose or bought for reselling purpose are known as goods or merchandise. Example Cloth is goods or merchandise for a cloth dealer. Cement is goods or merchandise for a cement dealer. Furniture is goods or merchandise for a furniture vendor. If these items are manufactured or bought …

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