Accounting. Merchandising

Merchandising Operations- Objective 1

Accounting

accounting

Learning Objectives 2

Purchase of merchandise inventory using perpetual inventory system

accounting

Learning Objectives 3

Account for the sale of merchandise inventory

Homework p306

accounting

Homework p306

accounting

Homework p342

accounting

Homework p342

accounting

Accounting book for The Textbook Store

Accounting book for

Learning Objectives – Chapter 5

Describe merchandising operations and the two types

Learning Objectives – Chapter 5

Adjust and close the accounts of a

accounting

Learning Objectives 3

Account for the sale of merchandise inventory

4. Transportation Cost - Freight Out

The freight in is part of

5. Net Sales Revenue

For the year, Smart Touch Learning sells $297,500

5. Net Sales Revenue

For the year, Smart Touch Learning sells $297,500

6. Gross Profit

The difference between Net Sales Revenues and Cost of

Practice Questions p312

accounting

Practice Question Solutions

accounting

Learning Objectives 4

Adjust and close the accounts of a merchandising

Adjusting Merchandise Inventory

At the end of the period, actual inventory

Adjusting Merchandise Inventory

Smart Touch Learning’s Merchandise Inventory account shows an

Closing the Accounts of a Merchandiser

Close R to Income Summary
Close E

5-

accounting

Closing in a Merchandiser

Closing the Accounts of a Merchandiser

At this point, the Income Summary

Learning Objectives 5

Prepare a merchandiser’s financial statements

Accounting

Merchandiser’s Financial Statements

Income Statement
Single-Step Income Statement
Multi-Step Income Statement (common approach)
Change in

Single-Step Income Statement

Income statement format that groups all revenues together and

Multi-Step Income Statement

Multi-step I/S format that contains subtotals to highlight significant

Multi-Step Income Statement

COGS: is also called Cost of Sales. It represents

Operating Expenses: Expenses (other than COGS) that occur in the entity’s

Other revenues and expenses: Revenues or expenses that are outside the

Statement of Owner’s Equity and the B/S

A merchandiser’s statement of owner’s

Learning Objectives 6

Use the gross profit percentage to evaluate business

Gross Profit Percentage

Measures the profitability of each sales dollar.
When this number

Gross Profit Percentage—Example

Gross Profit Percentage—Example

Gross Profit Percentage—Example

Gross Profit Percentage—Example

Practice Question

accounting

Practice Question

accounting

a. Sales – they should try to

Example – Summary Problem 5-1

Accounting

Accounting

Summary Problem 5-1

Accounting

5-

The adjusted trial balance of Leading Business Systems at March 31,