Lesson 5: accounting for merchandising operations in chapters 1-4, all text examples were ones involving service businesses in this lesson, we examine the accounting for merchandising operations -- those that sell products an example of a merchandising income statement appears in illustration 5-11 on page 198. Merchandising operations and inventory in accounting - chapter summary and learning objectives this chapter examines merchandising companies and the items that are included in a merchandise inventory skilled instructors will teach you about the different types of inventory systems, inventory valuation and methods for taking inventory. Chapter 5 accounting for merchandising operations learning objectives 1 identify the differences between service and merchandising companies 2 explain the recording of purchases under a perpetual inventory system 3 explain the recording of sales revenues under a perpetual inventory system 4.
The steps in the accounting cycle for a merchandising company are the same as those in a service company except: a an additional adjusting journal entry for inventory may be needed in a merchandising company. This feature is not available right now please try again later.
Merchandising operations are your purchasing, selling, collecting and payment activities although cyclical in nature, they are ongoing operations designed to improve your cash flow efficient merchandising operations keeps your store well stocked with inventory that your customers want to buy.
Merchandising operations lo 1 identify the differences between service and merchandising companies income measurement illustration 5-1 cost of goods sold is the total cost of merchandise sold during the period. 5 a multiple-step income statement provides users with more information about a company's performance by distinguishing between operating and non-operating activities.
Accounting for merchandising operations: extra practice problems 1 indicate whether the following are debit or credit accounts: a sales sales discount b cost of goods sold sales returns and allowances c d 2 what is the major difference between: a perpetual and periodic inventory system, and, b fob shipping point and fob destination point 3.