MERCHANDISING (PART 11) Let's go back sa MERCHANDISING.

Kamusta? BUYER = bumibili

Tayo na't mag-aral muli ng Accounting. 😊 SELLER = nagbebenta

Sana ay tapos mo nang basahin ang "Accounting Tutorials 1- Pwede kang tawaging BUYER at SELLER.
10" BUYER ka kung ikaw ang bumibili galing sa "supplier" mo.
Kung hindi pa, i-search mo lang ang group ng "TAC" SELLER ka naman kung ikaw ay nagbebenta sa iyong mga
(makikita mo dun ang iba pang mga tutorials) "customers".
** **
#START WHOLESALER vs RETAILER
Ano ang MERCHANDISING business? WHOLESALER = sila yung bumibili ng "maramihan" galing sa
Kung bumibili ka ng isang bagay/paninda sa halagang P100, at suppliers/manufacturers. Na siyang nagbebenta naman sa
binenta mo ito sa mas mahal na halaga (halimbawa P150), mga small retailers
ikaw ay masasabing engaged sa Merchandising business. RETAILER = sila naman yung bumibili galing sa wholesalers. Na
In simple words, BUY and SELL. siyang nagbebenta sa mga customers
(BUY low => SELL high) #Summary
Note: Kung ano ang binili mo, siya din dapat ang binenta mo. Suppliers/Manufacturers => Wholesaler => Retailer =>
Customers
Example.
Tela, binenta mo din as Tela. Example:
Damit, binenta mo din as Damit Manufacturing Companies => Stalls in Baclaran => Sari-sari
store => Customers
Pero pag bumili ka ng TELA para gupitin/tahiin upang maging
DAMIT, ito ay HINDI na masasabing merchandising. **

Ang tawag na diyan ay "MANUFACTURING" dahil may INVENTORY SYSTEM

"processing" nang nangyari kung saan ang TELA ay naging 1. Periodic Inventory System
DAMIT bago ibenta. 2. Perpetual Inventory System
Isang halimbawa din ay KAHOY, na naging LAMESA. (etc) By the way, sa Accounting, ang tawag sa paninda ay Goods or
** "INVENTORY"
1. PERIODIC inventory system
Inventory system para sa mga panindang Ang dapat mong bayaran ay P100.
- Mura (Low Value) Dahil naka discount ka ng P2, ang babayaran mo nalang ay
- Maramihan (Large quantity) P98.
- Pare-pareho (Homogenous) *
Example: Ano ba ang mga klase ng discounts?
Candies
Ans.
2. PERPETUAL inventory system
1. TRADE discount
Inventory system para sa mga panindang Nakakakuha ka ng "TRADE discount" kapag
- Mahal (High Value)
- Konti (Small quantity) - marami kang binibili (bulk orders)
- Magkakaiba (Heterogenous) - additional discounts for being a "member"
Example: - "sale" (yung madalas mong nakikita sa SM 😊)
Car NOTE: Ang "TRADE discount" ay hindi nire-record sa journal.
Ang iba pang pagkakaiba ng dalawang systems na ito (Periodic Example:
at Perpetual) ay mas pag-uusapan natin pagdating sa Journal List Price: P120
entries. Less: Trade Discount P20
** = Invoice Price P100
TRADE DISCOUNTS vs CASH DISCOUNTS Yung "invoice price" lang na P100 ang ating nire-record.
I'm sure na alam mo ang salitang "discount" Okay? 😊
Pag bumili ka ng goods sa halagang P100, at nagbayad ka lang 2. CASH discount
ng P98, magkano ang na-discount mo? Nakakakuha ka ng "CASH discount" kapag
100 - 98 = 2. - maaga kang nagbayad (early or "prompt payment")
P2 ang discount. - PURCHASE DISCOUNT (ito ang tawag sa "point of view" ni
buyer)
So ang discount pala ay ang halaga ng "ibabawas" sa dapat mo
bayaran. - SALES DISCOUNT (yan naman ang tawag sa "point of view" ni
seller)
NOTE: Yan naman ay nire-record sa ating journal.
* Bakit nasabi nating nagbayad ng maaga??
CASH DISCOUNT = Purchase discount (if BUYER) Dahil ang deadline ay sa 30th day pa.
CASH DISCOUNT = Sales discount (if SELLER) *
(iisa lang ang CASH DISCOUNT, PURCHASE DISCOUNT, at Lagyan natin ng DATES.
SALES DISCOUNT) May 1, Bumili ka ng goods with an "invoice price" of P100.
* Credit term: 2/10 n/30
Pero kelan ba nakakakuha ng cash discount? May 11 (after 10 days), nagbayad ka na.
Ans. P100 - 2 = P98 (yan nalang babayaran).
Pag nakabayad ka ng maaga within the "discount period"!!! Note: pwede ka din magbayad between May 1 - May 11)
Ating pag-usapang ang "discount period" (at "credit term") *
CREDIT TERM: 2/10 n/30 PAANO kung wala kang perang pambayad?
2 = discount rate (%) Ans.
10 = DISCOUNT PERIOD (days) Pwede ka pang magbayad hanggang May 31 (deadline). Pero
n = net babayaran mo na ng buo ang P100.
30 = deadline (maximum days) I hope nasundan ang kwento. 😊
ANONG meaning niyan? **
* TAKE NOTE the following:
Mabibigyan ka ng "2%" discount, pag nagbayad ka sa 10th day List price
(or mas maaga pa) - Trade discount 
Halimbawa. = INVOICE PRICE
May babayaran kang P100. Sales
In this case, babawasan ng P2 ang babayaran mo. (2% of P100) - Sales returns and allowances
- Sales discounts
P100 - P2 (cash discount) = P98.
= NET SALES
P98 nalang ang babayaran.
Beginning inventory
Dahil nagbayad ka ng maaga, lumiit ang binayaran mo. + Purchases
- Purchase returns and allowances
- Purchase discounts - BUYER'S point of view
+ Freight in - SELLER'S point of view
= COST OF GOODS AVAILABLE FOR SALE
- Ending inventory **
= COST OF GOODS SOLD (or COST OF SALES)
#START
Net sales
- Cost of goods sold (or Cost of sales) "PERIODIC INVENTORY" SYSTEM (BUYER'S point of view)
= GROSS PROFIT
+ Other income 1. Initial investment of merchandise
= TOTAL INCOME
- Distribution cost (or selling expenses) Debit: Merchandise inventory
- General and administrative expense Credit: Owner's capital
- Other expenses
- Finance cost (interest expense) 2. Purchase of merchandise
= INCOME BEFORE TAX
Debit: Purchases
- Tax
Credit: Cash / Accounts Payable
= NET INCOME ( or NET LOSS)
To be continued.. ❤ 3. Returns and allowances (defective merchandise)
THANKS AND GOD BLESS! ❤❤❤
Debit: Cash / Accounts Payable
~ Admin/Tutor Michael Credit: Purchase returns and allowances

4. Partial payment

Debit: Accounts payable

MERCHANDISING (PART 12) Credit: Cash
"PRO-FORMA ENTRIES" 5. Full payment
A. "PERIODIC INVENTORY" SYSTEM Debit: Accounts payable
B. "PERPETUAL INVENTORY" SYSTEM Credit: Cash
Or 4. Full collection

Debit: Accounts payable Debit: Cash

Credit: Cash Credit: Accounts receivable
Credit: Purchase discount
Or
6. Additional investment of merchandise
Debit: Cash
Debit: Purchases Debit: Sales discount
Credit: Owner's capital Credit: Accounts receivable

7. Withdrawal of merchandise ~~~~~~~~~~~~~~~~~~~~~~~~~

Debit: Owner's drawing "PERPETUAL" INVENTORY SYSTEM (BUYER'S point of view)

Credit: Purchases
1. Initial investment of merchandise
*
Debit: Merchandise inventory
PERIODIC INVENTORY" SYSTEM (SELLER'S point of view) Credit: Owner's capital

1. Sale of merchandise 2. Purchase of merchandise

Debit: Cash / Accounts receivable Debit: Merchandise inventory

Credit: Sales Credit: Cash / Accounts Payable

2. Returns and allowances (defective merchandise) 3. Returns and allowances (defective merchandise)

Debit: Sales returns and allowances Debit: Cash / Accounts Payable

Credit: Cash / Accounts receivable Credit: Merchandise inventory

3. Partial collection 4. Partial payment

Debit: Cash Debit: Accounts payable

Credit: Accounts receivable Credit: Cash
5. Full payment RETURNS

Debit: Accounts payable 1st entry

Credit: Cash Debit: Sales returns and allowances
Credit: Cash / Accounts receivable
Or
2nd entry
Debit: Accounts payable Debit: Merchandise inventory
Credit: Cash Credit: Cost of goods sold
Credit: Merchandise inventory
ALLOWANCES
6. Additional investment of merchandise
1st entry
Debit: Merchandise inventory Debit: Sales returns and allowances
Credit: Owner's capital Credit: Cash / Accounts receivable

7. Withdrawal of merchandise No 2nd entry

Debit: Owner's drawing 3. Partial collection

Credit: Merchandise inventory
Debit: Cash
* Credit: Accounts receivable

"PERPETUAL" INVENTORY SYSTEM (SELLER'S point of view) 4. Full collection

1. Sale of merchandise Debit: Cash

Credit: Accounts receivable
Debit: Cash / Accounts receivable
Credit: Sales Or

Debit: Cost of goods sold Debit: Cash

Credit: Merchandise inventory Debit: Sales discount
Credit: Accounts receivable
2. Return and allowances (defective merchandise)
~~~~~~~~~~~~~~~~~~~~~~~~~ SELLER'S point of view

#NewTopic 1. FOB SHIPPING POINT, COLLECT

"FREIGHT" (Periodic system) "No entry"

BUYER'S point of view 2. FOB DESTINATION, PREPAID

1. FOB SHIPPING POINT, COLLECT Debit: Freight out

Credit: Cash
Debit: Freight in
Credit: Cash 3. FOB SHIPPING POINT, PREPAID

2. FOB DESTINATION, PREPAID Debit: Accounts receivable

Credit: Cash
"No entry"
4. FOB DESTINATION, COLLECT
3. FOB SHIPPING POINT, PREPAID
Debit: Freight out
Debit: Freight in Credit: Accounts receivable
Credit: Accounts payable
OR
4. FOB DESTINATION, COLLECT
Debit: Freight out
Debit: Accounts payable Credit: Accounts payable (if sale is made for CASH)
Credit: Cash
~~~~~~~~~~~~~~~~~~~~~~~~~
OR
"FREIGHT" (Perpetual system)
Debit: Accounts receivable (if purchase is made for CASH)
Credit: Cash BUYER'S point of view

** 1. FOB SHIPPING POINT, COLLECT

Debit: Merchandise inventory 3. FOB SHIPPING POINT, PREPAID
Credit: Cash
Debit: Accounts receivable
2. FOB DESTINATION, PREPAID Credit: Cash

"No entry" 4. FOB DESTINATION, COLLECT

3. FOB SHIPPING POINT, PREPAID Debit: Freight out

Credit: Accounts receivable
Debit: Merchandise inventory
Credit: Accounts payable OR

4. FOB DESTINATION, COLLECT Debit: Freight out

Credit: Accounts payable (if sale is made for CASH)
Debit: Accounts payable
Credit: Cash **

OR NORMAL BALANCES:

Debit: Accounts receivable (if purchase is made for CASH) DEBIT:

Credit: Cash - Merchandise inventory
- Purchases
* - Freight in
- Freight out
SELLER'S point of view
(contra accounts)
1. FOB SHIPPING POINT, COLLECT - Sales returns and allowances
- Sales discount
"No entry"
*
2. FOB DESTINATION, PREPAID
CREDIT:
Debit: Freight out
- Sales
Credit: Cash
(contra accounts) - si SELLER and "dapat" magbayad
- Purchase returns and allowances - pero si BUYER ang pinagbayad
- Purchase discount **
#SampleSTORY
To be continued.. ❤ Nagkasabay tayo sa JEEP. Ang pamasahe ay P9.
THANKS AND GOD BLESS! ❤❤❤
Sinong dapat magbayad ng pamasahe ko?
E di AKO.
~ Admin/Tutor Michael
Sinong dapat magbayad ng pamasahe mo?
MERCHANDISING (PART 13) E di IKAW.
FREIGHT (Transportation cost), sinong magbabayad??? *Yan ang concept pag "FOB Shipping point" at "FOB Destination"
* Kung sino ang "dapat" magbayad??
- FOB "SHIPPING POINT" **
- FOB "DESTINATION" NGAYON,
- "COLLECT" Kumuha ako ng P9 sa bulsa ko para ibayad sa driver.
- "PREPAID"
Kumuha ka din P9 sa bulsa mo para ibayad sa driver.
**
Ito na ang "ACTUAL" na pagbabayad natin ng pamasahe sa driver.
COMBO 1
*Yan naman concept pag COLLECT at PREPAID.
FOB shipping point, Collect
Kung sino ang talagang naglabas ng pera pambayad sa driver.
- si BUYER ang "dapat" magbayad
- si BUYER din ang nagbayad **
COMBO 2 #NewSCENARIO
FOB destination, Prepaid PAANO kung inabonohan ko muna ang pamasahe mo?
- si SELLER and "dapat" magbayad
- si SELLER din ang nagbayad Sinong "dapat" magbayad ng pamasahe mo?
Ans. IKAW parin.
COMBO 3
FOB shipping point, Prepaid Pero sinong naglabas ng pera para magbayad sa driver?
- si BUYER ang "dapat" magbayad Ans. AKO.
- pero si SELLER muna ang nagbayad Dahil inabonohan ko ang P9 na pamasahe mo, may obligation kang
COMBO 4 bayaran ako.
FOB destination, Collect *
Scenario A: - si SELLER and "dapat" magbayad
May DATI kang utang saken na P91. - si SELLER din ang nagbayad
Idadagdag ko yung bagong utang mo saken na P9 dahil sa pamasahe. From Manila, ipapadala ni Seller ang inventory papuntang Cebu para
Total na utang mo na saken ay P100 (91+9) matanggap ni Buyer.

* Ang usapan, si SELLER ang "dapat" magbayad ng pamasahe na P9 (FOB

DESTINATION).
Scenario B:
Ako ang may utang sayo DATI na P91. Tapos si SELLER din talaga ang naglabas ng pera para bayaran yung P9
na pamasahe. (PREPAID)
Nagkautang ka naman saken ngayon na P9 dahil sa pamasahe.
*
Imbis na bayaran ko ng buo yung utang ko, ibabawas nalang dun yung
P9. COMBO 3
FOB shipping point, Prepaid
Kaya magiging P82 nalang ang ibabayad ko sayo (91-9=82) - si BUYER ang "dapat" magbayad
** - pero si SELLER muna ang nagbayad
#GoingBack From Manila, ipapadala ni Seller ang inventory papuntang Cebu para
SELLER: Manila matanggap ni Buyer.
BUYER: Cebu Ang usapan, si BUYER ang "dapat" magbayad ng pamasahe na P9 (FOB
Inventory: P100 SHIPPING POINT).
Freight (transportation cost): P9 Pero inabonohan muna ni SELLER yung pamasahe na P9 from Manila,
COMBO 1 going to Cebu (PREPAID)

FOB shipping point, Collect Kaya ang mangyayari, magiging P109 na ang makokoleta ni Seller.
- si BUYER ang "dapat" magbayad Sale of inventory: P100
- si BUYER din ang nagbayad Plus freight: P9

From Manila, ipapadala ni Seller ang inventory papuntang Cebu para Total of P109
matanggap ni Buyer. *
Ang usapan, si BUYER ang "dapat" magbayad ng pamasahe na P9 (FOB COMBO 4
SHIPPING POINT). FOB destination, Collect
Tapos si BUYER din talaga ang naglabas ng pera para bayaran yung P9 - si SELLER and "dapat" magbayad
na pamasahe. (COLLECT) - pero si BUYER ang pinagbayad

* From Manila, ipapadala ni Seller ang inventory papuntang Cebu para

matanggap ni Buyer.
COMBO 2
FOB destination, Prepaid
Ang usapan, si SELLER ang "dapat" magbayad ng pamasahe na P9 (FOB
DESTINATION).
Pero si BUYER ang pinagbayad ng P9 nag pamasahe (COLLECT).
Kaya ang mangyayari, magiging P91 nalang ang babayaran ni Buyer.
Purchase of inventory: P100
Minus yung binayaran niyang freight na P9.
Balance: P91
**
FOB = Free On Board
FOB Shipping Point: FREE or nakalibre ang shipper. Ang shipper ay si
seller. Si seller ang libre.
Kaya si "BUYER" ang dapat magbayad ng freight.
FOB Destination: FREE or nakalibre kung sino ang makakatanggap ng
goods/inventory sa destination. Ang makakatanggap ay si Buyer
kayasiya ang makakalibre sa freight.
Si "SELLER" ang dapat magbayad ng freight.
Collect: Si BUYER ang naglabas ng perang pambayad.
Prepaid: Si SELLER ang naglabas ng perang pambayad.
~ Admin/Tutor Michael
#TAC
#TheAccountant