A merchandising business is a business that buys goods and sells them for profit. Merchandising businesses, which include wholesalers and retailers, typically handle inventory, therefore accounting procedures exist to record the cost of goods sold or not sold. This course will provide practical information about maintaining accounts and generating financial statements specifically for merchandising businesses. Applying these accounting procedures will help keep a business in control of its goods and ultimately, its profit margin.Learning Objectives
- Accounting for Purchases and Sales
- Recognize the benefits of applying specific accounting methods for a merchandising business.
- Merchandise Purchases
- Apply the rule of debit and credit for purchase transactions, given a scenario.
- Purchase Discounts and Returns
- Apply the rule of debit and credit for purchase discount and purchase return transactions, given a scenario.
- Merchandise Sales
- Apply the rule of debit and credit for sale transactions, given a scenario.
- Sales Discounts and Returns
- Accounting for Merchandise Inventory
- Recognize the benefits of applying accounting methods for maintaining accurate inventory records.
- Methods of Accounting for Inventory
- Identify the appropriate methods being used to account for inventory in a given scenario.
- Adjusting Merchandise Inventory
- Completing the Merchandising Accounting Cycle
- Recognize the benefits of completing the accounting cycle for a merchandising company.
- Cost of Goods Sold
- Calculate the cost of goods sold for a merchandising company, given a scenario.
- The Income Statement
- Perform the necessary steps to complete an income statement for a merchandising company, given a scenario.
- Closing the Ledger
Individuals who require knowledge of the basics of accounting, who are starting a business, who are learning to manage the accounting activities of a business, who need to review standard accounting principles and procedures, shareholders, or potential shareholders.