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    1. Merchandising businesses sell goods or merchandise to customers, such as retail clothing stores and bookstores. They earn income by buying and selling inventory. 2. Companies that sell products at fixed prices use a perpetual inventory system to continuously track the cost and quantity of inventory on hand for each item. This is typically done by linking the inventory system to the point-of-sale system in retail stores. 3. Journal entries are made to record the purchase and return of merchandise. Purchases are debited to Merchandise Inventory and credited to Cash or Accounts Payable. Returns are debited to Cash or Accounts Payable and credited to Merchandise Inventory.

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    1. Merchandising businesses sell goods or merchandise to customers, such as retail clothing stores and bookstores. They earn income by buying and selling inventory. 2. Companies that sell products at fixed prices use a perpetual inventory system to continuously track the cost and quantity of inventory on hand for each item. This is typically done by linking the inventory system to the point-of-sale system in retail stores. 3. Journal entries are made to record the purchase and return of merchandise. Purchases are debited to Merchandise Inventory and credited to Cash or Accounts Payable. Returns are debited to Cash or Accounts Payable and credited to Merchandise Inventory.

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    15 views6 pages

    Acc212 Ebrahim Aman

    Uploaded by

    Wa X
    1. Merchandising businesses sell goods or merchandise to customers, such as retail clothing stores and bookstores. They earn income by buying and selling inventory. 2. Companies that sell products at fixed prices use a perpetual inventory system to continuously track the cost and quantity of inventory on hand for each item. This is typically done by linking the inventory system to the point-of-sale system in retail stores. 3. Journal entries are made to record the purchase and return of merchandise. Purchases are debited to Merchandise Inventory and credited to Cash or Accounts Payable. Returns are debited to Cash or Accounts Payable and credited to Merchandise Inventory.

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    of 6

    Accounting 212

    Handout

    Name: ………………………………

    ID: …………………………………

    Class: ………………………………

    Done by: Ebrahim Hasan Aman


    CH 1
    ‫القيود اليومية للشركات السلعية‬
    General Journal For Merchandise Business

    A merchandising business sells


    A service business goods, also known as merchandise. Good
    provides services to its examples of merchandising businesses
    customers. Accountants, law include retail clothing, grocery stores and
    firms and cleaning services are bookstores. A merchandiser earns net
    examples of service businesses. income by buying and selling
    merchandise.

    Difference between services and


    merchandise companies
    ❖ Introduction:
    Definition of Perpetual Inventory System
    Companies keep detailed records of the cost of each inventory purchase
    and sale. These records continuously – perpetually – show the inventory
    that should be on hand for every item. Companies that sell products with
    fixed prices use perpetual inventory systems.

    - ‫ بشكل دائم‬- ‫ تظهر هذه السجالت بشكل مستمر‬.‫تحتفظ الشركات بسجالت مفصلة لتكلفة كل شراء وبيع مخزون‬
    ‫ تستخدم الشركات التي تبيع منتجات بأسعار ثابتة أنظمة جرد‬.‫المخزون الذي يجب أن يكون في متناول اليد لكل عنصر‬
    .‫دائمة‬
    ‫بمعنى أنه يتم تحديث المعلومات الخاصة بكمية المخزون والتوفر بشكل مستمر و يتم تحقيق ذلك عمو ًما عن طريق‬
    .‫ربط نظام المخزون بإدخال الطلب في نظام نقاط البيع بالتجزئة في البيع بالتجزئة‬

    Done by: Ebrahim Hasan Aman


    ‫معاني الكلمات الجديدة‬
    Collected / Received ‫ استالم‬/ ‫ تحصيل‬/ ‫جمع‬ On account / on credit ‫على الحساب‬
    Perpetual Inventory
    ‫ المستمر‬/ ‫نظام المخزن الدائم‬ Performed ‫تقديم‬
    System
    Purchases = Bought ‫شراء‬ Merchandise )‫بضائع (سلع‬
    Purchases Returns ‫استرجاع المشتريات‬ Bought / Purchased ‫شراء‬
    Discount ‫ تخفيض‬/ ‫خصم‬ Merchandise Inventory ) ‫مخزون البضائع (السلع‬
    Invested = Deposited = ‫استثمر = اودع‬
    Paid ‫دفع‬
    Started = Contributed ‫بدأ = ساهم‬

    Done by: Ebrahim Hasan Aman


    Complete the following table

    NORMAL
    ACCOUNT  
    BALANCE
    1- Purchased Goods (Inventory) Debit
    2- Sales Returned Of Goods Debit
    3- Sales Discount Of Goods Debit
    1- Sales Goods Credit
    2- Purchases Return Of Goods (Inventory) Credit
    3- Purchases Discount Goods (Inventory) Credit

    Done by: Ebrahim Hasan Aman


    Journal Entry of
    ‫شراء‬ Purchased goods ‫المشتريات‬
    ‫البضاعة‬ (merchandise)

    (1)Cash (2)Credit
    Debit Debit
    Credit Credit
    (Merchandise (Merchandise
    (Cash) (A/C Payable)
    Inventory) Inventory)

    Date Details LF Debit Credit Date Details LF Debit Credit


    Merchandise XXX Merchandise XXX
    Inventory Inventory
    Cash XXX A/C XXX
    Payable

    Debit Merchandise Inventory

    Purchased goods (merchandise)


    1
    Credit Cash

    Debit Merchandise Inventory

    Purchases goods on account without


    2 discount
    Credit Account payable

    Done by: Ebrahim Hasan Aman


    Journal Entry of
    ‫إرجاع‬ Purchases Returns ‫المشتريات‬
    ‫البضاعة‬ (merchandise)

    (1)Cash (2)Credit
    Credit Credit
    Debit Debit
    (Merchandise (Merchandise
    (Cash) (A/C Payable)
    Inventory) Inventory)

    Date Details LF Debit Credit Date Details LF Debit Credit


    Cash XXX Account XXX
    Merchandise XXX Payable
    Inventory Merchandise XXX
    Inventory

    Debit Cash

    Purchases Returns (merchandise)


    1 for cash
    Credit Merchandise Inventory

    Debit Account payable

    Purchases Returns (merchandise)


    2 on account
    Credit Merchandise Inventory

    Done by: Ebrahim Hasan Aman

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