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Unit 11

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  1. Unit 11 Wednesday Sept 25, 2019

  2. $$$ BUYER SELLER Goods & Services TRANSACTION COMMERCE

  3. $$$ BUYER SELLER Goods & Services PURCHASE TRANSACTION

  4. $$$ BUYER SELLER Goods & Services SALE TRANSACTION

  5. The role of PERSPECTIVE

  6. $$$ BUYER SELLER Goods & Services PURCHASE TRANSACTION

  7. BUYER SELLER Goods & Services PURCHASE TRANSACTION

  8. BUYER Goods

  9. $$$ BUYER SELLER Goods & Services SALE TRANSACTION

  10. $$$ CONTRACT BUYER SELLER SALES CONTRACT PURCHASE CONTRACT Goods or Services

  11. CONTRACT A formal and legally binding agreement between 2 parties If one party performs as required, the other party must then perform as required.

  12. Cash $ Unearned Revenue $ Prepaid $ Cash $ $$$ BUYER SELLER Goods or Services Expense $ Prepaid $ Unearned Revenue $ Revenue $

  13. Cash $ AcctsRec’ble $ Accts Payable $ Cash $ $$$ BUYER SELLER Goods or Services Asset/Expense $ Accts Payable $ AcctsRec’ble $ Revenue $

  14. $$$ CONTRACT BUYER SELLER SALES CONTRACT PURCHASE CONTRACT Goods or Services

  15. CONTRACT A formal and legally binding agreement between 2 parties If one party performs as required, the other party must then perform as required.

  16. Agreement Between Two Parties

  17. Agreement Between Two Parties

  18. Agreement Between Two Parties

  19. Agreement Between Two Parties

  20. Agreement Between Two Parties

  21. Business-to-Business exchanges are almost always in writing. • Business-to-Business exchanges are almost always in the form of a “Purchase Order”issued by the purchaser, frequently acknowledged in writing by the Seller. • Business to Consumer exchanges are sometimes in writing in the form of a “Sales Order” issued by the seller. • On-line exchanges (B2B and B2C) are usually initiated by the purchaser and are almost always acknowledged in writing (email or web) by the seller.

  22. Jumanji Supply Corp. 404 Webb St Whittington, NJ Shipping Point

  23. FORDHAM Enterprises Southeastern Manufacturing Inc. 4221 Parkview Blvd. Atlanta, GA 30554 Attn: Wilson White, Engineering Dpt Fordham Enterprises Matls Receiving Dock 4522 SE 4th Ln Holly Hill Industrial Park Baldwin, FL 32044 Purchase Order

  24. BOILERPLATE “Terms and Conditions”

  25. Jumanji Supply Corp. 404 Webb St Whittington, NJ Shipping Point

  26. Accrual Accounting • The Balance Sheet must properly show the rights and obligations of the entity. • Rights must be shown as assets. • Obligations must be shown as liabilities.

  27. Don’t CONFUSE “RIGHTS OF OWNERSHIP” with “possession”!!!

  28. Don’t CONFUSE “RIGHTS OF OWNERSHIP” with “possession”!!!

  29. The Sales/Purchase contract between two parties transfers rights of ownership. A different type of contract between parties transfers rights of possession but not ownership. BAILMENT

  30. BUYER SELLER Goods or Services

  31. BUYER SELLER Goods

  32. Bill of Lading

  33. The Bailee is responsible for the safety of the goods while the Bailee has possession. If the goods are lost, damaged, or destroyed while in possession of the Bailee, the Bailee must compensate the owner of the goods.

  34. Bill of Lading

  35. $$$ BUYER SELLER Goods

  36. Shipping Manifest Employee’s fiduciary responsibility, not contractual liability.

  37. $$$ BUYER SELLER Goods

  38. BUYER SELLER

  39. BUYER SELLER

  40. $$$ BUYER SELLER Goods or Services

  41. BUYER SELLER

  42. BUYER SELLER Does the buyer owe the seller money? WHO does the trucking company reimburse for the loss? Can the seller recognize Revenue?

  43. $$$ BUYER SELLER Goods & Services FOB Point TRANSACTIONCONTRACT

  44. FOB Point Defines that point in time and space where TITLE OF OWNERSHIP passes from Seller to Buyer. Free On-Board