Recording merchandising business transactions

7.Recording merchandising business transactions

7.1   Merchandising operations (nature and operating cycle of a merchandising business, business documents)

7.2   Recording merchandising business transactions in a two-column general journal

• sales revenue, 

• sales returns and allowances, 

• sales discounts, 

• purchases of merchandise, 

• purchase returns and allowances, 

• purchase discounts, 

• transportation costs

7.3   Inventory systems

• perpetual inventory procedures

• periodic inventory procedures

7.4   Determination of merchandise inventory, costs of goods sold and gross margin

7.5   Worksheet preparation

7.6   Adjusting and closing process for a merchandising business

7.7   Financial statements of a merchandising business

7.8   Use of accounting information in decision making