Your goals for this “merchandising” chapter are to learn about:
Merchandising businesses and related sales recognition issues.
Purchase recognition issues for the merchandising business.
Alternative inventory system: The perpetual method.
Enhancements of the income statement.
The control structure.
(BQ) Part 1 book "Corporate financial accounting" has contents: Introduction to accounting and business, analyzing transactions, the adjusting process, completing the accounting cycle, accounting for merchandising businesses, fixed assets and intangible assets,...and other contents.
(BQ) Part 1 book "Survey of accounting" has contents: An introduction to accounting, understanding the accounting cycle, accounting for merchandising businesses; internal controls, accounting for cash, and ethics; accounting for long term operational assets; accounting for liabilities,...and other contents.
Chapter 4 - Accounting for merchandising businesses. Previous chapters have discussed accounting for service businesses. These businesses obtain revenue by providing some kind of service. This chapter introduces accounting practices for merchandising businesses.
(BQ) Part 1 book "Financial accounting" has contents: Introduction to accounting and business, analyzing transactions, the adjusting process, completing the accounting cycle, accounting systems, accounting for merchandising businesses, inventories,...and other contents.
(BQ) Part 1 book "Survey of accounting" has contents: An Introduction to accounting, understanding the accounting cycle, accounting for merchandising businesses, accounting for inventories, accounting for receivables, accounting for long term operational assets,...and other contents.
(BQ) Part 1 book "Survey of accounting" has contents: The role of accounting in business, basic accounting concepts, accrual accounting concepts, accounting for merchandising businesses, fixed assets and intangible assets, receivables and inventories, financial statement analysis,...and other contents.
Chapter 11 - Introduction to merchandising businesses: Sales. After completing this chapter, students will be able to: Describe the difference between cash, charge account, and credit card sales; compute sales tax; use credit terms; compute the cash discount and amount of payment due on an invoice; apply the procedure for handling sales returns and allowances.
Chapter 12 - Introduction to merchandising businesses: Purchases. After completing this chapter, students will be able to: Apply the procedure for checking the accuracy of invoices; use an unpaid invoice file; explain the difference between FOB shipping point and FOB destination; demonstrate the procedure for handling purchases returns and allowances; compute purchases discounts.
Randy Howatt, who fi rst saw the value of my ideas and without
whose encouragement, this book would never have been written.
When a leader has earned membership in Young Presidents’ Organization
and World Presidents’ Organization, his opinion carries clout.
My team of book reviewers, who gave generously of their time
and their expertise in providing incredibly helpful feedback. Thanks
to Bob Swellie of American Greetings, Jack Kopnisky, President of
Key Bank, Andy Eckert of Storecast Merchandising Corporation,
Andre Sampri Sporting Goods Store purchases sporing goods merchandise on account from various vendors. Below is an invoice from Tennis Wear World.
Prepare Andre Sampri’s journal entries for each of the following transactions, assuming use of a periodic inventory system and the “gross method” of recording:
To record the invoice on May 15.
To record the return of the Summer Fun collection on May 17.
To record the payment of the balance due if payment occurred on May 20.
To record the payment of the balance due if payment occurred on May 30....
Aim is to highlight the differences between the worksheet of a service business and the worksheet prepared for merchandisers under the perpetual and periodic inventory systems, assumes you already know how to construct a worksheet, Refer to chapter 4 if you need a refresher on how a worksheet is constructed.
Chapter 5 - Merchandising & multi-step income statement. The main contents of this chapter include all of the following: 3 basic types of companies: service businesses, merchandiser, manufacturer; income statement: multiple step format; inventory methods;...
Chapter 9 - Financial planning and analysis: The master budget. After completing this chapter, you should be able to: Explain the relationship between financial planning and analysis and the master budget; list and explain five purposes of budgeting; describe the similarities and differences in the operational budgets prepared by manufacturers, service-industry firms, merchandisers, and nonprofit organizations;...
Chapter 5 - Merchandising operations. This chapter introduces the merchandising business and the merchandising income statement. The perpetual inventory system is presented first with the periodic inventory presealed as an alternative. The merchandising work sheet is included as a supplemental objective.
This full-color, seminar-in-a-book presents a proven plan for maximizing your online profits by leveraging the top three services: eBay, Yahoo! and Google. You’ll learn to: expand an existing eBay business to reach millions of targeted buyers; Open a Yahoo! store to build a thriving direct-to-customer business; and send more customers to their online retail business with improved search engine placement and targeted adword buys using Google.
An understanding of the principles of bookkeeping
and accounting is essential for anyone
who is interested in a successful career in business.
The purpose of bookkeeping and accounting
is to provide information concerning the financial
affairs of a business. This information
is needed by owners, managers, creditors, and
An individual who earns a living by recording the financial activities
of a business is known as a bookkeeper, while the process of classifying and summarizing business transactions and interpreting their effects is
accomplished by the accountant.
Medium-term note A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from the following maturity bands: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.
Membership or a seat on the exchange A limited number of exchange positions that enable the holder to trade for the holder's own accounts and charge clients for the execution of trades for their accounts. Merchandise All movable goods such as cars, textiles, appliances, etc....
Those assets that a company:
1. Intends to sell in the normal course of business. 2. Has in production (work in process) for future sale. 3. Uses currently in the production of goods to be sold (raw materials).
Types of Inventories
Types of Inventory
Goods acquired for resale
•Raw Materials •Work-in-Process •Finished Goods
Inventory Cost Flows
Raw Materials Work in Process Finished Goods
Traditional retailing (bricks and mortar) itself has been witness to numerous
realignments; the dawning of the Internet has forced a fundamental reexamination of the
value notion as viewed from the consumer’s perspective. Retailing itself has been
dynamic in its format. From a historical traveling caravan, to a mail order behemoth
created by the ingenuity of Sears, Roebuck & Co.