Review of Merchandising Business

It is an income account; it is credited when the goods or merchandise are sold by cash or on account.

• Sales

• Purchases

• Sales Return

• Purchase Return

Goods on hand, ready for resale on the next accounting period.

• Sales

• Shipping Charges

• Merchandise Inventory

• Purchases

It represent the cost of merchandise sold during the period. It is deducted from sales to determine the gross sales profit.

• Merchandise Inventory

• Cost of Goods Sold

• Net Purchase

• Net Sales

the buyer shoulders the delivery expenses upon the delivery of merchandise to the buyer's place.

• F.O.B Shipping Point

• F.O.B Destination

• Perpetual Inventory

• Periodic Inventory

the seller shoulders the delivery expense upon the delivery of merchandise to the buyer's place.

• F.O.B Shipping Point

• F.O.B Destination

• Perpetual Inventory

• Periodic Inventory

An account used to record the purchase of merchandise or goods intended for resale

• Purchases

• Sales

• Inventory

• Shipping Charges

the amounts charge on merchandise delivered to customers

• Purchases

• Sales

• Inventory

• Shipping Charges

this represents the amount computed when the net sales is deducted with cost of sales.

• Net Sales

• Gross Sales Profit

• Sales

• Purchases

inventory method wherein there is no physical counting of goods or merchandise to determine the cost of goods sold and ending inventory.

• Perpetual Inventory method

• Periodic Inventory method

inventory method wherein there is physical counting of goods or merchandise to determine the cost of goods sold and ending inventory.

• Perpetual Inventory method

• Periodic Inventory method