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Chapter 5 Understand the nature of an Accounting System, and the three step process for creating or upgrading an accounting system. Know the definition of Internal Control. Understand the role of subsidiary ledgers and their relationship to control accounts in the general ledger. What types of transactions need to be posted to which subsidiary ledgers? Understand and know how to use the special journals, i.e. the Sales, Cash Receipts, Purchases, and Cash Payments journals. What types of transactions are recorded in each? Know what journals affect what accounts. Which journals post to the Cash account, to Fees Earned, to Accounts Receivable, to accounts payable? Which journals affect which subsidiary ledgers? Understand the posting references in the Special Journals, and in the General Ledger accounts. Chapter 6 Merchandising Business Merch Inv, COGS, GP Multiple step income statement, Net Sales, GP, OP Income, NI New accounts in the chart of accounts Using perpetual Inventory, be able to journalize o Sales, Sales Returns, Sales Discounts o Purchases, Purchase returns, Purchase discounts, Freight-in o Delivery expense, sales tax, sales on credit cards o Adjusting the ending inventory for the physical count o Closing entries You do not need to journalize transactions under the periodic method, but you should know how the periodic method works, calculating net purchases and cost of goods sold Chapter 7 Know about the internal control issues surrounding inventory Know the various inventory cost flow assumptions, and how to calculate cost of goods sold and ending inventory under each assumption for both perpetual and periodic inventory systems. Know how to apply the lower of cost or market rule Know how inventory errors affect the income statement and balance sheet over the two year period Be able to calculate inventory turnover and Number of Days sales in inventory. Be able to estimate ending inventory using the gross profit method of inventory costing please this is for my exam help

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