[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.24,0:00:01.16,Default,,0000,0000,0000,,Okay.
Dialogue: 0,0:00:01.16,0:00:03.92,Default,,0000,0000,0000,,You don't want to overstate\Nyour cost of inventory
Dialogue: 0,0:00:03.92,0:00:04.100,Default,,0000,0000,0000,,that you have sold
Dialogue: 0,0:00:05.00,0:00:07.92,Default,,0000,0000,0000,,because now this $2,000 of worth--
Dialogue: 0,0:00:07.92,0:00:13.16,Default,,0000,0000,0000,,So, $2,000 is your markup\Nof the cost of $1250.
Dialogue: 0,0:00:13.16,0:00:16.92,Default,,0000,0000,0000,,$1250 is your actual cost\Nthat you spend buying that inventory,
Dialogue: 0,0:00:16.92,0:00:19.08,Default,,0000,0000,0000,,which you sold for $2,000.
Dialogue: 0,0:00:19.08,0:00:24.32,Default,,0000,0000,0000,,It was part of the journal entry\Nthat happened on the 20th
Dialogue: 0,0:00:24.32,0:00:27.44,Default,,0000,0000,0000,,when you make a sale on ticket number 53
Dialogue: 0,0:00:27.44,0:00:29.60,Default,,0000,0000,0000,,for total of $3,000 worth.
Dialogue: 0,0:00:29.60,0:00:32.88,Default,,0000,0000,0000,,So, what happened in transaction I\Non the 24th
Dialogue: 0,0:00:32.88,0:00:37.36,Default,,0000,0000,0000,,is that Penny, your customer,\Nreturned $2,000
Dialogue: 0,0:00:37.36,0:00:42.20,Default,,0000,0000,0000,,of merchandise that cost you $1,250.
Dialogue: 0,0:00:42.20,0:00:44.32,Default,,0000,0000,0000,,So, you want to credit Penny's account,
Dialogue: 0,0:00:44.32,0:00:47.92,Default,,0000,0000,0000,,so you go to your subsidiary ledger.
Dialogue: 0,0:00:47.92,0:00:51.36,Default,,0000,0000,0000,,You look for Penny.
Dialogue: 0,0:00:51.36,0:00:56.20,Default,,0000,0000,0000,,And now, this is on page number three.\N[computer chimes]
Dialogue: 0,0:00:56.20,0:01:00.78,Default,,0000,0000,0000,,of the general ledger.
Dialogue: 0,0:01:00.78,0:01:04.46,Default,,0000,0000,0000,,And this is transaction I, okay?
Dialogue: 0,0:01:04.46,0:01:07.14,Default,,0000,0000,0000,,And what you want to do is,\Nyou want to show--
Dialogue: 0,0:01:07.14,0:01:12.94,Default,,0000,0000,0000,,or in the quick explanation\Nthat you can say is this um, um, issue--
Dialogue: 0,0:01:12.94,0:01:15.70,Default,,0000,0000,0000,,Oops.
Dialogue: 0,0:01:15.70,0:01:17.66,Default,,0000,0000,0000,,Credit memo #1.
Dialogue: 0,0:01:17.66,0:01:21.86,Default,,0000,0000,0000,,So, usually when you issue credit memo\Nto a customer,
Dialogue: 0,0:01:21.86,0:01:24.78,Default,,0000,0000,0000,,it usually means that\Nyou've given credit back
Dialogue: 0,0:01:24.78,0:01:26.90,Default,,0000,0000,0000,,and they have returned the goods to you,
Dialogue: 0,0:01:26.90,0:01:29.62,Default,,0000,0000,0000,,or you go ahead\Nand just give them credit without,
Dialogue: 0,0:01:29.62,0:01:32.54,Default,,0000,0000,0000,,um, having the goods return to you.
Dialogue: 0,0:01:32.54,0:01:36.10,Default,,0000,0000,0000,,Okay, in this case, it was $2,000
Dialogue: 0,0:01:36.10,0:01:38.02,Default,,0000,0000,0000,,that you credit the customer.
Dialogue: 0,0:01:38.02,0:01:43.22,Default,,0000,0000,0000,,So, this customer no longer owe you $3,800
Dialogue: 0,0:01:43.22,0:01:47.42,Default,,0000,0000,0000,,because they have received
Dialogue: 0,0:01:47.42,0:01:52.50,Default,,0000,0000,0000,,a $2,000 credit\Nof goods that they have returned to you.
Dialogue: 0,0:01:52.50,0:01:53.70,Default,,0000,0000,0000,,Okay?
Dialogue: 0,0:01:53.70,0:01:56.98,Default,,0000,0000,0000,,So, that's your I.
Dialogue: 0,0:01:56.98,0:02:01.17,Default,,0000,0000,0000,,And now, as we go down,
Dialogue: 0,0:02:01.17,0:02:04.69,Default,,0000,0000,0000,,there's also something on the 26th for J.
Dialogue: 0,0:02:04.69,0:02:06.33,Default,,0000,0000,0000,,We receive cash from Penny
Dialogue: 0,0:02:06.33,0:02:10.33,Default,,0000,0000,0000,,in payment of March 20th ticket number 53.
Dialogue: 0,0:02:10.33,0:02:12.37,Default,,0000,0000,0000,,And here's a little hint:
Dialogue: 0,0:02:12.37,0:02:14.65,Default,,0000,0000,0000,,don't forget about the credit memo\Nand discount.
Dialogue: 0,0:02:14.65,0:02:19.33,Default,,0000,0000,0000,,Well, originally the transaction happened\Non the 20th.
Dialogue: 0,0:02:19.33,0:02:22.13,Default,,0000,0000,0000,,The terms of sale is 4/10.
Dialogue: 0,0:02:22.13,0:02:25.37,Default,,0000,0000,0000,,So, if Penny paid within ten days,
Dialogue: 0,0:02:25.37,0:02:29.29,Default,,0000,0000,0000,,she gets 4% discount, right?
Dialogue: 0,0:02:29.29,0:02:31.89,Default,,0000,0000,0000,,But Penny, on the 24th,
Dialogue: 0,0:02:31.89,0:02:34.69,Default,,0000,0000,0000,,also returned $2,000 worth of goods.
Dialogue: 0,0:02:34.69,0:02:39.01,Default,,0000,0000,0000,,So, in this journal entry you definitely going to get some cash back.
Dialogue: 0,0:02:39.01,0:02:41.57,Default,,0000,0000,0000,,You're also going to debit sales discount,
Dialogue: 0,0:02:41.57,0:02:43.65,Default,,0000,0000,0000,,which, just like sales return and allowances,
Dialogue: 0,0:02:43.65,0:02:45.77,Default,,0000,0000,0000,,the normal side's on the debit side.
Dialogue: 0,0:02:45.77,0:02:49.73,Default,,0000,0000,0000,,If we do sales revenue,\Nit's a contra sales revenue account.
Dialogue: 0,0:02:49.73,0:02:54.41,Default,,0000,0000,0000,,You are also going to credit\Naccounts receivable for Penny.
Dialogue: 0,0:02:54.41,0:02:56.25,Default,,0000,0000,0000,,Now, first of all,
Dialogue: 0,0:02:56.25,0:03:01.15,Default,,0000,0000,0000,,if you look at your subsidiary ledger really quickly,
Dialogue: 0,0:03:01.15,0:03:04.31,Default,,0000,0000,0000,,the ticket number 53 was $3,000.
Dialogue: 0,0:03:04.31,0:03:06.07,Default,,0000,0000,0000,,The credit was $2000.
Dialogue: 0,0:03:06.07,0:03:09.83,Default,,0000,0000,0000,,So, for this transaction alone on ticket 53,
Dialogue: 0,0:03:09.83,0:03:14.43,Default,,0000,0000,0000,,it is only $1,000 worth that Penny owe.
Dialogue: 0,0:03:14.43,0:03:17.27,Default,,0000,0000,0000,,Be really careful and read through the description
Dialogue: 0,0:03:17.27,0:03:18.75,Default,,0000,0000,0000,,or the instruction.
Dialogue: 0,0:03:18.75,0:03:21.59,Default,,0000,0000,0000,,In the instruct-- instruction for J,
Dialogue: 0,0:03:21.59,0:03:25.39,Default,,0000,0000,0000,,you receive cash from Penny\Nin payment of March 20th.
Dialogue: 0,0:03:25.39,0:03:27.71,Default,,0000,0000,0000,,sales ticket number 53.
Dialogue: 0,0:03:27.71,0:03:29.63,Default,,0000,0000,0000,,There was nothing that stated
Dialogue: 0,0:03:29.63,0:03:32.63,Default,,0000,0000,0000,,that Penny is including payment\Nof this $800,
Dialogue: 0,0:03:32.63,0:03:35.71,Default,,0000,0000,0000,,the beginning balance that you carry over.
Dialogue: 0,0:03:35.71,0:03:39.63,Default,,0000,0000,0000,,So, right now, in terms of\Nonly looking at ticket 53,
Dialogue: 0,0:03:39.63,0:03:45.23,Default,,0000,0000,0000,,there was--\Nit was originally for sales of $3,000.
Dialogue: 0,0:03:45.23,0:03:48.63,Default,,0000,0000,0000,,$2000 has been returned to you.
Dialogue: 0,0:03:48.63,0:03:51.71,Default,,0000,0000,0000,,So, what you need to make sure you do is that
Dialogue: 0,0:03:51.71,0:03:55.59,Default,,0000,0000,0000,,there's only $1,000 owed
Dialogue: 0,0:03:55.59,0:03:59.34,Default,,0000,0000,0000,,by customer Penny on ticket number 53.
Dialogue: 0,0:03:59.34,0:04:01.94,Default,,0000,0000,0000,,Okay, so pay attention to what the instructions tell you.
Dialogue: 0,0:04:01.94,0:04:04.06,Default,,0000,0000,0000,,If the instructions tell you,
Dialogue: 0,0:04:04.06,0:04:08.42,Default,,0000,0000,0000,,"Received cash from Penny\Nfor sales ticket 53
Dialogue: 0,0:04:08.42,0:04:13.02,Default,,0000,0000,0000,,"plus um...um,\Nbalance owed from previous month,"
Dialogue: 0,0:04:13.02,0:04:17.26,Default,,0000,0000,0000,,then you would use\Nthis particular balance of $1800.
Dialogue: 0,0:04:17.26,0:04:21.34,Default,,0000,0000,0000,,But in this case,\Nyou're only doing $1,000.
Dialogue: 0,0:04:21.34,0:04:26.02,Default,,0000,0000,0000,,So, the accounts receivable is $1,000
Dialogue: 0,0:04:26.02,0:04:27.42,Default,,0000,0000,0000,,that you want to credit.
Dialogue: 0,0:04:27.42,0:04:29.22,Default,,0000,0000,0000,,And sales discount
Dialogue: 0,0:04:29.22,0:04:33.38,Default,,0000,0000,0000,,is going to be calculated by $3000--
Dialogue: 0,0:04:33.38,0:04:37.90,Default,,0000,0000,0000,,that's the original transaction\Nthat happened on the 20th--
Dialogue: 0,0:04:37.90,0:04:41.26,Default,,0000,0000,0000,,minus $2,000
Dialogue: 0,0:04:41.26,0:04:43.50,Default,,0000,0000,0000,,that Penny returned,
Dialogue: 0,0:04:43.50,0:04:47.30,Default,,0000,0000,0000,,times 4%.
Dialogue: 0,0:04:47.30,0:04:47.94,Default,,0000,0000,0000,,Okay?
Dialogue: 0,0:04:47.94,0:04:53.74,Default,,0000,0000,0000,,So, the amount would be $1,000 times 40--\N40 [chuckles]
Dialogue: 0,0:04:53.74,0:04:55.78,Default,,0000,0000,0000,,4%: that's $40.
Dialogue: 0,0:04:55.78,0:04:59.88,Default,,0000,0000,0000,,And so, the cash that you receive\Nwill be $1000
Dialogue: 0,0:04:59.88,0:05:06.44,Default,,0000,0000,0000,,minus the sales discount of $40.
Dialogue: 0,0:05:06.44,0:05:10.04,Default,,0000,0000,0000,,Okay?\NSo, that's how you would debit cash,
Dialogue: 0,0:05:10.04,0:05:15.28,Default,,0000,0000,0000,,debit sales discount, and credit that $1,000.
Dialogue: 0,0:05:15.28,0:05:21.100,Default,,0000,0000,0000,,So, you credit $1,000,\Nand this was transaction J,
Dialogue: 0,0:05:22.00,0:05:27.32,Default,,0000,0000,0000,,and you're paying off, umm...
Dialogue: 0,0:05:27.32,0:05:35.20,Default,,0000,0000,0000,,You're paying with discount\Nfor ticket number 53.
Dialogue: 0,0:05:35.20,0:05:35.64,Default,,0000,0000,0000,,Okay?
Dialogue: 0,0:05:35.64,0:05:41.52,Default,,0000,0000,0000,,So now, the balance that Penny owes
Dialogue: 0,0:05:41.52,0:05:46.08,Default,,0000,0000,0000,,is going to be $800,
Dialogue: 0,0:05:46.08,0:05:49.36,Default,,0000,0000,0000,,the balance that was carried over\Nfrom the previous month.
Dialogue: 0,0:05:49.36,0:05:54.20,Default,,0000,0000,0000,,For whatever reason, Penny has not yet\Npaid that previous balance.
Dialogue: 0,0:05:54.20,0:05:58.68,Default,,0000,0000,0000,,Penny just make payment on her\Ncurrent transaction this month, okay?