Merchandising

The type of business that buys and sells goods.

• Manufacturing

• Merchandising

• Finance

• Infrastructure

• Service

(a)   account is used when merchandise are sold to customers. (account title)

(a)   account that represents the amount of goods or merchandise bought by the business from suppliers. (account title)

These are goods purchased that remains unsold at the end of the accounting period.

• Supplies

• Inventory

• Stock

• Raw materials

It is a reduction from the selling price in order to promote sale of the merchandise.

• Cash discount

• Trade discount

• Returns

• Allowances

It is reduction from the price of the goods for prompt payment of the account.

• Cash discount

• Trade discount

• Returns

• Allowances

(a)   goods are already shipped by the seller but not yet received by the buyer.

What is the meaning of F.O.B.?

(a)  

In this inventory system, the business immediately adjusts the inventory account every time there is purchase and sale transaction.

• Perpetual

• Periodic

• Manufacturing

• Merchandising

(a)   is the difference between the net sales and cost of sales.