Summary:
This time, the article I read on the http://www.cbc.ca/ is named “Toyota sales slip for the first time in seven years”. The world economy for the second half year of 2008 is dark. Stock prices fall, oil prices drop and everything relates to the money is affect by the economy situation right now. Toyota Motor Corp. is an example for that. Toyota Motor Corp. said on Monday its world sales fell in the July-September quarter, marking the first decline in seven years for the Japanese automobile maker. The company only sold 2.24 million between July to September, and it is down four per cent compares to the same three months in 2007. The reason caused sales decline is weakening U.S. demands. The Toyotas sales of September in U.S. fell thirty-two percent due to the economic recession. Previously, Toyota’s U.S. sales had been supported by demand for fuel-efficient vehicles. On the other hands, Toyota has been battling with General Motors Company for the top spot in global vehicle sales too. In 2007, General Motor’s group sales 9.37 million for total, and it is just ahead of Toyota’s sale of 9.366 million vehicles. Therefore, we can estimate the total sales of 2008 for Toyota Motor Corp. may below 9.366 million because the sales are suffered in the economy recessions now.
Connection:
The main connection between this article and the information in Chapter 12 in our textbook is the word “Sales Slip” as we can see in the title. In our textbook, Chapter 12 introduces five kinds journal entries include the Sales Journal. The source documents for sales journal are sales invoices, charge sales slips and credit invoices issued. Absolutely we know that the most common way people buy and pay for their cars is down payment. Down payment means a person will issue a cheque for the partly payments of his car when the first time he bought it, then issue the cheques every month until the day he paid all his car debt. Therefore, Toyota Motor Corp. must have sales journal for the cars it sales. The transaction entries for this will be debit the bank, account receivable, and credit the sales revenue, GST and PST payable. However, since the economy does not do very well right now, the sales of Toyota Motor Corp will decrease, which means there are less sales journal than before. In addition, the revenue will decrease too.
Reflection:
Sometimes, some people may pay full amounts of the cars’ payment when they buy them; so the transaction entries for that will be much simple and easier. Debit the bank, credit the sales revenue, GST and PST payable. You do not need to debit the account receivables since there are no down payments. The sales journal is a major journal that direct affects your revenue and your net income. Therefore, due to what article said its sales fell down to the bottom, which means its revenue for this year will fall down. However, the decreasing of the revenue does not mean it will have a net loss. The people who work for Toyota Motor Corp. should pay attention to their jobs right now because due to the economy situation right now, many companies are beginning to cut the employees.
1 comment:
Hi there! thanks for leaving comments on my last blog. It seens that many of the articles for chapter 12 focuses on the slip of sales (including mine). Yes, the low sales of companies are mainly caused by the recent economic slowdown. As we know, cars from Toyota are very durable. They are cheap, efficient, and they don't use much oil. This is the reason its sale haven't slipped for several years. But this year, due to the economic slowdown, almost all of the Japanese companies are seeing sharply decreasing profit due to the rising of yen and the falling of other currencies. I think that these companies will most likely have to offer discounts to increase their sales.
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