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BUS 2101. The Big Picture…. Merchandising Operations. Inventory systems Purchases of merchandise Sales of merchandise Income statement for merchandisers. Inventory systems. Purchase of merchandise. Use Merchandise Inventory account for only inventory, not supplies, equipment, etc.
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BUS 2101 The Big Picture…
Merchandising Operations • Inventory systems • Purchases of merchandise • Sales of merchandise • Income statement for merchandisers
Purchase of merchandise Use Merchandise Inventory account for only inventory, not supplies, equipment, etc.
Freight on merchandise purchased Freight for merchandise purchased is part of the cost of an asset, Merchandise Inventory
Freight on merchandise sold Freight for merchandise sold is an expense.
Purchase discounts Discount for 2/10, n/60. Reduces cost of inventory.
Returns of merchandise sold Negative revenue
Sales discounts Sales Discounts is a negative revenue account.
Income Statement Merchandiser What conclusions can you make about Aggie Anvils?
BUS 2101 The Big Picture…