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LESSON 9-1

LESSON 9-1. Journalizing Purchases Using a Purchases Journal. Merchandising Business. Merchandise – goods purchased to sell Examples: Toothpaste, Paper Towel, Dish Soap Merchandising Business – A business that sells goods Examples: Target, Walmart, RiteAid.

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LESSON 9-1

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  1. LESSON 9-1 Journalizing Purchases Using a Purchases Journal

  2. Merchandising Business Merchandise – goods purchased to sell Examples: Toothpaste, Paper Towel, Dish Soap Merchandising Business – A business that sells goods Examples: Target, Walmart, RiteAid

  3. Two Types of Merchandising Businesses Retail Merchandising Business – sells to those who use or consume the product Example: Walmart, Target, RiteAid Whole Sale Merchandising Business – sells to a business that will resell the goods to a Retail Merchandiser. Example: Hughes Supply Charlotte – Plumbing Empire Distributors - Alcohol

  4. COST OF MERCHANDISE page 236 Cost of MerchandiseDecreases Sales so it has a debit balance The cost of goods purchased to resell to customers. Markup The amount added to the cost of goods. Vendor The business used to purchase goods. Sold gold earrings: $500.00Cost of gold earrings: -300.00 Actual Revenue Earned: $200.00 Cost of Merchandise LESSON 9-1

  5. 5 Chart of Accounts for a Merchandising Business page 236 Partial Chart of Accounts 410 Sales -------------------------- 510 Purchases 520 Purchases Discount 530 Purchases Returns & Allowance ------------------------- 610 Advertising Expense 620 Insurance Expense 630 Supplies Expense LESSON 9-1

  6. SPECIAL JOURNALS page 236 Frequently used transactions can be recorded in a special journals: Purchases Journal – to record purchases ON ACCOUNT Cash Payments Journal – to record cash payments Sales Journal – to record sales of merchandise ON ACCOUNT Cash Receipts Journal – to record cash received LESSON 9-1

  7. PURCHASES JOURNAL page 237 Special Amount Column – Saves time when creating frequently occurring transactions LESSON 9-1

  8. 2 PURCHASE INVOICE page 238 1 4 3 1. Stamp the date received andpurchase invoice number. 3. Initials of the person whochecked the invoice. 2. Place a check mark by each amount. 4. Review the vendor’s terms. LESSON 9-1

  9. Vendor Terms • When must the invoice be paid? • TERMS indicate terms of payment 30 days The invoice is due 30 days from the invoice date. If the Invoice Date is October 26, the Due Date is November 24.

  10. PURCHASING MERCHANDISE ON ACCOUNT page 239 November 2. Purchased merchandise on account from Crown Distributing, $2,039.00. Purchase Invoice No. 83. 2 1 3 4 1. Write the date. 2. Write the vendor name. 3. Write the purchase invoice number. 4. Write the amount of the invoice. LESSON 9-1

  11. 1 6 TOTALING AND RULING A PURCHASES JOURNAL page 240 4 5 3 2 1. Rule a single line across the amount column. 4. Add the amount column. 5. Write the total. 2. Write the date. 6. Rule double lines across the amount column. 3. Write the word Total. LESSON 9-1

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