1 / 10

Unit 4: The Accounting Cycle for a Merchandising Corporation

Unit 4: The Accounting Cycle for a Merchandising Corporation. Chapters 14-21 Accounting 2 Ms. Alltucker. Chapter 14: Accounting for Sales and Cash Receipts. Accounting II Ms. Alltucker. Learning Objectives. Explain the difference between a service business and a merchandising business

topanga
Télécharger la présentation

Unit 4: The Accounting Cycle for a Merchandising Corporation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 4: The Accounting Cycle for a Merchandising Corporation Chapters 14-21 Accounting 2 Ms. Alltucker

  2. Chapter 14: Accounting for Sales and Cash Receipts Accounting II Ms. Alltucker

  3. Learning Objectives • Explain the difference between a service business and a merchandising business • Analyze transactions relating to the sale of merchandise • Explain the difference between a retailer and a wholesaler • Record a variety of sales and cash receipt transactions in a general journal • Define the accounting terms introduced in this chapter

  4. Section 1: Accounting for a Merchandising Business • What you will learn: • The purpose of a merchandising business • The difference between a retailer and a wholesaler • Uses of merchandise inventory account and its rules of debit and credit • Uses of sales account and its rules of debit and credit • Why it’s important: • As consumers, we buy goods from merchandising businesses daily. You need to understand the nature of these transactions to maintain accounting records for a merchandising business.

  5. Service vs. Merchandise • Service provides a service to the public for a fee • Merchandising buys goods and then sells those goods to customers for a profit • Operate as retailers or wholesalers or both • Retailers business that sells to the final user, consumer • Wholesaler business that sells to retailers

  6. Operating Cycle of a Merchandising Business

  7. Chart of Accounts • Look on page 355 for the chart of accounts • What accounts are new to you?

  8. Merchandising Inventory Account • Merchandise goods bought for resale • Inventory items of merchandise the business has in stock • Merchandise inventory—account name Merchandise Inventory Debit + Increase Side Normal Balance Credit – Decrease Side

  9. Sales Account • When a retail merchandising business sells to a customer, the mount of the merchandise sold is recorded in the SALES account • Sales account • Revenue account Sales Credit + Increase Side Normal Balance Debit – Decrease Side

  10. Thinking Critically • 1. Explain the two types of merchandising businesses? • 2. What type of account is Merchandise Inventory?

More Related