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Fndact1 H-05 Merchandising Operations
Fndact1 H-05 Merchandising Operations
MERCHANDISING OPERATIONS
1. Retailer or merchandiser
is an entity that buys and sells (finished) goods to earn a profit.
Entities that purchase and sell directly to consumers are retailers, and those that sell to retailers are known as wholesalers.
7. Source documents
Purchase requisition Accounts payable voucher (APV)
Purchase order/Sales order Check/EFTs
Packing slip Official Receipt
Delivery receipt/Bill of lading/Airway bill Credit memorandum
Receiving report Debit memorandum
Supplier invoice
Requirement:Journalize the following transactions on the books of the buyer and seller for each of the cases above:
a. Jan 1: Purchase/sale of goods
b. Jan 3: Payment of freight charges
c. Jan 5: Returns and allowances
d. Jan 11: Payment within the discount period (For case no. 4, journalize also if paid on Jan 13)
e. Payment beyond the discount period (assume a date beyond discount period)
11. Periodic Inventory System and Perpetual Inventory System Illustrative Example
a. Jan. 1, Retail Co. purchased P100,000 merchandise from Supplier Co., 2/10, n30. FOB shipping point, freight collect.
b. Jan. 5, Retail Co. paid P1,500 freight cost.
c. Jan. 8, Retail Co. returned P5,000 worth of defective merchandise toSupplier Co..
d. Jan 11, Retail Co. paid the balance due on Jan. 1 purchase.
e. Jan 15, Retail Co. sold P21,000 worth of merchandise to Customer Co. for P30,000, 1/15, n30. FOB destination, freight prepaid.
f. Jan 20, Retail Co. paid for the delivery cost, P1,000.
g. Jan 24, Customer Co. returned goods costing P2,100 sold for P7,000 due to defects.
h. Jan 28, Customer Co. was granted by allowance by Retail Co. for damaged goods. The goods cost P600 and were originally sold for
P2,000.
i. Jan 31, Customer Co. paid the balance due to Retail Co. related to Jan. 15 purchase.
Requirements: Journalize above transactions of Retail Co. under (a) periodic inventory system and (b) perpetual inventory system.
12. Gross Method and Net method of accounting for purchase discounts.
a. Jan. 1, Retail Co. purchased P10,000 worth of inventory, terms 2/10, n30, FOB destination, freight collect.
b. Jan 5, Retail Co. paid freight cost, P500.
c. Jan 8, Retail Co. returned P2,000 worth of inventory due to wrong specifications.
d. Jan 11, Retail Co. paid the amount due to supplier related to Jan. 1 purchase.
e. Jan 12, assume Retail Co. paid the amount due to supplier on this date instead.
Requirements: Journalize above transactions of Retail Co. under (a) Gross method and (b) Net method of accounting for purchases discounts. Use
periodic inventory system.
Requirements: Journalize above transactions of Retail Co. under (a) Gross method, (b) Net method of accounting for sales discounts.
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Retail Operationss
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