Unit 4 The Accounting Cycle for a Merchandising

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Unit 4: The Accounting Cycle for a Merchandising Corporation Chapters 14 -21 Accounting 2

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

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 Analyze

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

Section 1: Accounting for a Merchandising Business What you will learn: The purpose of

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.

Service vs. Merchandise Service provides a service to the public for a fee Merchandising

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

Operating Cycle of a Merchandising Business

Operating Cycle of a Merchandising Business

Chart of Accounts Look on page 355 for the chart of accounts What accounts

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

Merchandising Inventory Account Merchandise goods bought for resale Inventory items of merchandise the business

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

Sales Account When a retail merchandising business sells to a customer, the mount of

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 Debit – Decrease Side Credit + Increase Side Normal Balance

Thinking Critically 1. Explain the two types of merchandising businesses? 2. What type of

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

Merchandising Merchandising PDV Merchandising editorial Merchandising social MerchandisingMerchandising Merchandising PDV Merchandising editorial Merchandising social Merchandising
Chapter 10 Merchandising the Menu Merchandising Merchandising theChapter 10 Merchandising the Menu Merchandising Merchandising the
RETAIL MERCHANDISING WHAT IS MERCHANDISING Merchandising consists ofRETAIL MERCHANDISING WHAT IS MERCHANDISING Merchandising consists of
RETAIL MERCHANDISING WHAT IS MERCHANDISING Merchandising consists ofRETAIL MERCHANDISING WHAT IS MERCHANDISING Merchandising consists of
Unit 4 The Accounting Cycle for a MerchandisingUnit 4 The Accounting Cycle for a Merchandising
Unit 4 The Accounting Cycle for a MerchandisingUnit 4 The Accounting Cycle for a Merchandising
Unit 4 The Accounting Cycle for a MerchandisingUnit 4 The Accounting Cycle for a Merchandising
Unit 4 The Accounting Cycle for a MerchandisingUnit 4 The Accounting Cycle for a Merchandising
Unit 4 The Accounting Cycle for a MerchandisingUnit 4 The Accounting Cycle for a Merchandising