lesson a - introduction to merchandising business.pptx

8/16/2019 Lesson A - INTRODUCTION TO MERCHANDISING BUSINESS.pptx

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Introduction toMERCHANDISING

BUSINESS

Placido M. Menaje, Jr. BSC-Accounting; CPA; MSA Accountancy Department

COLLEGE OF BUSINESS ACCOUN!ANC" NA!IONAL UNI#ERSI!"


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MERCHANDISING BUSINESS $ a %r&'(a' en)a)e* in + -in) and *ellin)%ni*(ed )ood* * c( a* )rocer- i'e&*,

read- 'o /ear clo'(in), and o'(er*i&ilar i'e&* read- 0or *e or 0orcon* &1'ion.

MERCHANDISE $ an- i'e&* on (and'(a' are in'ended 0or *ale. !(e*ei'e&* are recorded nder '(e acco n' Merc(andi*e In2en'or-.

DEFINI!ION OF !ERMS


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OPERA!ING C"CLE $ '(e 1eriodo0 'i&e '(a' a co&1an- 'a3e* incon2er'in) i'* in2en'or- in'o

recei2a+le and %nall- in'o ca*(.!(i* c-cle i* o0'en'i&e*de*cri+ed a* 40ro& ca*( 'oca*(5.

ACCOUN!ING C"CLE $ '(e *erie*o0 *'e1* in2ol2in) acco n'in)ac'i2i'ie* '(a' *'ar'* /i'(recordin) o0 'ran*ac'ion* and

DEFINI!ION OF !ERMS 6con'in ed


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7. Jo rnali8in)9. Po*'in):. Pre1arin) '(e 'rial +alance*. (Preparing the worksheet – optional)

;. Pre1arin) '(e adj *'in) en'rie*. Pre1arin) '(e 1o*' clo*in) 'rial +alance*. (Preparing the reversing entries –

optional)

RE#IE? OF !HEACCOUN!ING C"CLE


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COMMON BUSINESSDOCUMEN!S

USED IN MERCHANDISINGBUSINESS


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B *ine** 'ran*ac'ion* are

recorded in '(e +oo3*+a*ed on *o rcedoc &en'*. !(i* i** 11or'ed +- '(e1rinci1le o0 OBJEC!I#I!"@or reliability or

BUSINESS DOCUMEN!S


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PURCHASE ORDER $ a doc &en'/(ic( con'ain* '(e de'ail* o0)ood* 'o +e +o )(' n &+er o0

ni'*, +rand or &odel, ni' 1rice,and o'(er rele2an' in0or&a'ion.!(i* i* 1re1ared +- '(e + -er and0or/arded 'o '(e *eller.

CHARGE SALES IN#OICE $ adoc &en' /(ic( con'ain* '(ede'ail o0 )ood* *old on acco n'.!(i* i* 1re1ared +- '(e *eller+a*ed on '(e 1 rc(a*e order

BUSINESS DOCUMEN!S


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CASH SALES IN#OICE $ adoc &en' *i&ilar 'o '(ec(ar)e *ale in2oice /(ic(con'ain* '(e de'ail o0 )ood**old on ca*( +a*i*.OFFICIAL RECEIP! $ adoc &en' i** ed +- '(e *eller/(en (e @*(e collec'* 0ro& acredi' c *'o&er, or /(en ca*(i* recei2ed 0ro& *ale o0 non

BUSINESS DOCUMEN!S . . .continued


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DEBI! MEMORANDUM @DebitMemo $ a doc &en' 1re1ared+- '(e + -er in0or&in) '(e*eller o0 '(e re' rn o0 de0ec'i2e)ood* and '(e corre*1ondin)red c'ion o0 lia+ili'- ( AccountsPayable ).

CREDI! MEMORANDUM @CreditMemo – a doc &en' 1re1ared+- '(e *eller in0or&in) '(e+ -er '(a' (e (a* red ced (i*

BUSINESS DOCUMEN!S . . .continued


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7. Periodic In2en'or-Me'(od

9. Per1e' al In2en'or-Me'(od

ME!HODS OF RECORDINGMERCHANDISING!RANSAC!IONS


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PERIODIC IN#EN!OR" ME!HOD


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I' doe* no' &ain'ain led)eracco n' 0or Co*' o0 Sale*.I' doe* no' 1da'e '(eMerc(andi*e In2en'or-led)er acco n'.!(e co*' o0 &erc(andi*e *oldand '(e co*' o0 &erc(andi*eon (and a' '(e end of the periodi* de'er&ined '(ro )(

( *ical co n' o0 '(e ood*.

PERIODIC IN#EN!OR"ME!HOD


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!(ere i* a need 'o co&1 'e 0or'(e Co*' o0 Sale* .

!(i* &e'(od i* *ed +- %r&*/(o*e 'ran*ac'ion* are recorded&an all- and /(o*e in2en'orie*are 2ol &ino * + ' /i'( lo/ ni'1rice*.I' need* an adj *'in) en'r- 0or'(e Merc(andi*e In2en'or- acco n' 'o *e' 1 '(e endin)

PERIODIC IN#EN!OR"ME!HOD continued


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!(e buyer *e* '(e 0ollo/in)acco n' 'i'le* in recordin)&erc(andi*in) 'ran*ac'ion*7. P rc(a*e*9. P rc(a*e Re' rn* and

Allo/ance*:. P rc(a*e Di*co n';. Frei)(' In

PERIODIC IN#EN!OR"

ME!HOD continued


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!(e *eller *e* '(e 0ollo/in)acco n' 'i'le* in recordin)

&erc(andi*in) 'ran*ac'ion*7. Sale*9. Sale* Re' rn* and

Allo/ance*: . Sale* Di*co n';. Frei)(' O '(!ran*1or'a'ion O ' or

PERIODIC IN#EN!OR"

ME!HOD continued


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PERPE!UAL

IN#EN!OR" ME!HOD


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Se1ara'e led)er acco n'* are&ain'ained 0or Merc(andi*eIn2en'or- and Co*' o0 Sale* . In'(i* /a-, '(e co*' o0 )ood*alread- *old and co*' o0 )ood*no' -e' *old are al/a-*

(perpetually) a2aila+le 0ro& record*.P(-*ical co n' o0 )ood* on (anda' '(e end o0 '(e -ear i* al*o&ade 'o CONFIRM '(e +alance o0&erc(andi*e in2en'or- 1er

PERPE!UAL IN#EN!OR"ME!HOD continued


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An- di erence +e'/een '(e1(-*ical co n' and '(eled)er +alance o0 '(e&erc(andi*e in2en'or-acco n' i* ei'(er de+i'ed orcredi'ed 'o !nventory "hortor #ver acco n'.I0 '(e 1(-*ical co n' i* le**'(an '(e led)er +alance,'(ere i* in2en'or *(or'a e ;



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!(e !nventory "hort or #ver i*clo*ed 'o '(e Cost o$ "ales

acco n'.!(e 1er1e' al in2en'or- &e'(odi* *ed +- %r&* /(o*e'ran*ac'ion* are alread-co&1 'eri8ed .Under a &an al en2iron&en','(i* in2en'or- &e'(od i* *ed +-%r&* '(a' &ain'ain 0e/



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!(e + -er *e* onl- '(eMerchandise !nventory acco n'0or (i* &erc(andi*in)

'ran*ac'ion*.!(e *eller *e* '(e 0ollo/in)acco n'*7. Sale*

9. Co*' o0 Sale*:. Sale* Re' rn* and Allo/ance*;. Sale* Di*co n'


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%nd o$ introduction toMERCHANDISING

BUSINESS

&e't opic

MERCHANDISING!RANSAC!IONS

lesson a - introduction to merchandising business.pptx

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