Merchandising operations

After completing this chapter you should be able to: Identify the differences between a service and merchandising companies, explain the recording of purchases under a perpetual inventory system, explain the recording of sales revenues under a perpetual inventory system,... and other contents.

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Lecture "International accounting - Chapter 4: Merchandising operations" has content: What are merchandising operations, accounting for inventory in the perpetual system, adjusting and closing the accounts of a merchandiser, preparing a merchandiser’s financial statements, three ratios for decision making.

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We will look at inventory for two classes of businesses. For merchandising companies like Wal-Mart, goods are acquired from a supplier for resale to the final consumer. In a manufacturing operation, the company normally has three inventories.

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