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Merchandiser
Buy and sell products i.e inventory TERM 2
periodic inventory
DEFINITION 2 Does not keepcontinuous record of inventoryPhysically counts goods in inventory TERM 3
equation cost of goods sold
DEFINITION 3 Beginning inv. + Purchases = Cost of goods available for sale
- ending inv. = cost of goods sold TERM 4
perpetual inv.
DEFINITION 4 keeps running record of inv. as its bought and soldmade easier by technology barcodes TERM 5
Cash credit purchases
DEFINITION 5 debit creditInv cashinv accnts pay
Purchase returns and allowances (Unsuitable
goods) Return unsatisfactory merch
Debit CreditAccnts pay Inv. TERM 7
Purchase Discounts (Payment on accnts pay
with disc.)
DEFINITION 7 Debit CreditAccnts Pay Inv.( amount of discount) Cash (Accnts pay less dicount) TERM 8
Cash sales sold merch
DEFINITION 8 debit creditcash Sales RevCost of goods sold inv. TERM 9
Credit sales (sold merch on accnt.)
DEFINITION 9 Debit CreditAccnts rec Sales revCost of goods sold Inv. TERM 10
Sales return and
allowances
DEFINITION 10 Customers return unwanted merch or keep the goods and request an allowanceRecorded in contra-accountSales returns and allowancesnormal debit
Revenues in ssis (single- step income
statement)
Sales revInterest rev TERM 17
Expenses in
ssis
DEFINITION 17 cost of goods soldselling expensegeneral expenses TERM 18
Net income
DEFINITION 18 Total rev - total expenses
