ACC 100 Chapter 5: Merchandising Businesses

288 views4 pages

Document Summary

Merchandising businesses: analyze, using the financial reporting elements and the critical and enhancing questions, inventory purchases if you are the buyer. Inventory purchased by cash inventory (an asset account) goes up, cash (an asset account) goes down: analyze, using the financial reporting elements and the critical and enhancing questions, inventory sales if you are the seller. In terms of inventory sales, two things happened at the same time: the inventory was sold at a certain selling price and at the same time you got rid of some of your inventory which cost a certain amount. Inventory sold on cash; first part of the transaction. Cash (an asset account), sales revenue (a revenue account) goes up. Inventory sold on cash; second part of the transaction. Inventory (an asset account) goes down, cost of goods sold (an expense account) goes up: understand and record the effect of shipping terms on purchases if you are the buyer.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions