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  • Chap 5 Pa

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    Phuong Thao Nguyen
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    The document discusses merchandising operations and accounting for inventory. It defines merchandising companies as those that buy and resell goods. It explains that inventory is an asset account that tracks the quantity and value of goods available for sale. The cost of goods sold account records the costs associated with goods that were sold during an accounting period as an expense. Ending inventory represents the goods still available for sale at the end of an accounting period. It also briefly outlines how to record purchases, purchase returns, and purchase allowances.

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    chap 5 pa

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    The document discusses merchandising operations and accounting for inventory. It defines merchandising companies as those that buy and resell goods. It explains that inventory is an asset account that tracks the quantity and value of goods available for sale. The cost of goods sold account records the costs associated with goods that were sold during an accounting period as an expense. Ending inventory represents the goods still available for sale at the end of an accounting period. It also briefly outlines how to record purchases, purchase returns, and purchase allowances.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    5 views2 pages

    Chap 5 Pa

    Uploaded by

    Phuong Thao Nguyen
    The document discusses merchandising operations and accounting for inventory. It defines merchandising companies as those that buy and resell goods. It explains that inventory is an asset account that tracks the quantity and value of goods available for sale. The cost of goods sold account records the costs associated with goods that were sold during an accounting period as an expense. Ending inventory represents the goods still available for sale at the end of an accounting period. It also briefly outlines how to record purchases, purchase returns, and purchase allowances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    merchandising operations: buy and sell activities

    Merchandising Companies: buy good and sell back ( coop mart, fpt,
    thegioididong,..)
    Inventory account: hang ton kho - belong to asset account- will have
    opening balance
    Sale account:
    Cost of Goods Sold:gia von hang ban- the money spending to buy
    product- during accounting period
    Cost of good available for sale: combine inventory and cost of good
    sold
    Cost of good sold: sold out to customer-belong to expense/ income
    statement
    Ending inventory: has not sold out
    Closing process
    + temporary account: expense, revenue, drawing
    + permanent account: asset, liability, owner equity

    HOW TO RECORD
    Purchase invoice
    Credit term: may permit buyer to claim as cash discount for prompt payment
    Term 2/10: 2% discount if pay within 10 days
    N/30: the value of the invoice need to pay with 30 days since the begini
    Purchase reTurn
    Purchase allowance

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