33:382:103 Lecture Notes - Lecture 5: Debits And Credits, Net Income

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Accounting for entre & sb: lecture #5 (chapter 5) The revenue account for a merchandiser is called sales or sales revenue . Unlike a service business, a merchandiser sells a product, not a service. They must rst have the product to be able to continue with their business. Cost of goods sold is the amount the merchandiser bought his products for. Gross pro t (gross margin) is the amount you get after subtracting sales from cost of. Operating expenses is the money that goes to operations. It represents the items you bought with the intent of reselling them. Perpetual inventory: continually updating accounting records of inventory available for sale and inventory sold. Periodic inventory: updates accounting records only at the end of a period. Companies want you to pay earlier so they can pay their own bills as well. They offer a discount for people who pay earlier.

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