INTRODUCTION

TO ACCOUNTING
ACCOUNTING FOR
MERCHANDISING COMPANY

SESSION 2 TF 53
LEARNING OBJECTIVE

DESCRIBE MERCHANDISING OPERATIONS AND INVENTORY SYSTEMS

RECORD SALES UNDER A PERPETUAL & PERIODIC INVENTORY SYSTEM

RECORD PURCHASES UNDER A PERPETUAL & PERIODIC INVENTORY

SYSTEM

PREPARE FINANCIAL STATEMENTS FOR A MERCHANDISING COMPANY.

 WHAT IS MERCHANDISING
COMPANY?
The merchandising Company is a company that buy or sell goods to earn profit

TYPE OF MERCHANDISING COMPANY

Retailers Wholesale
SERVICE COMPANY VS MERCHANDISING COMPANY

The Operating Cycle flow in merchandising company is usually much longer than in service
company, so the calculation of Income Statement and Cost are more plenty.

Service company Merchandising company

Service Revenue xxxx

Less: Operating Expense (xxxx)
Net Income (Gain / Loss) xxxx
 SYSTEM TO RECORD
In merchandising, there are 2 systems to record the Cost of Goods Sold & Ending Inventory, specifically
Perpetual Inventory System (periodically) and Periodic Inventory System (per period).

Perpetual Periodic
Company Record inventory every Company doesn’t record detail of
transactions in detailed (from purchase amount inventory in warehouse
and selling)
COGS calculation are determined at the
Company monitoring the amount of end of the period, calculation based on
inventory sales, purchases, and amount of
inventory in the end of period
Normally used in company that sell
goods with high value and small Normally used in company that sell
quantity. Example: Handphone, goods with low value and large quantity.
computer, etc. Example: Indomie, Bengbeng, Yupi, etc
CALCULATION COGS Perpetual Method

1. Determine beginning inventory at the

beginning of period.

2. Add Cost of Goods Purchased

3. Substract Ending Inventory at the end of

period
RECORDING PURCHASE Buyer’s PoV

1. Purchase of Inventory: 2. Freight Costs:

a. Perpetual a. Perpetual
Inventory xxxx Inventory xxxx
Account Payable xxxx Cash xxxx

b. Periodic b. Periodic
Purchase xxxx Freight-in xxxx
Account Payable xxxx Cash xxxx
RECORDING PURCHASE Buyer’s PoV

3. Purchase Return & Allowances: 4. Payment on Account with a discount:

a. Perpetual a. Perpetual
Account Payable xxxx Account Payable xxxx
Inventory xxxx Cash xxxx
Inventory xxxx
b. Periodic
Account Payable xxxx b. Periodic
Purchase Return & Allowance xxxx Account Payable xxxx
Cash xxxx
Purchase Discount xxxx
 PURCHASE DISCOUNT
Purchase discount is a discount are given by seller or supplier,
but there are some terms and conditions.
Example:
1. 2/10, n/30
2. 1/10 EOM
3. n/10 EOM
*Note: EOM= End of Month (Akhir bulan)
RECORDING PURCHASE
RECORDING SALES
 PRACTICE
Jelaskan apa arti kode diskon dari 3/15, n45
Jelaskan apa arti kode diskon dari 2/15, EOM
perusahaan Z membeli 30 box pulpen untuk dijual lagi, dibayarnya secara langsung,
harga perbox pulpen adalah $30, catat transaksi menggunakan 2 metode yang ada
Perusahaan X menjual barang seharga $40 ke perusahaan M secara cash. namun
harga barang yang dijual adalah $15
Dibeli barang dagang sebesar $ 30.000 dimana 40% dibayar tunai dan sisanya dengan
syarat 1/15, n/30, FOB Shipping point. Ongkos angkut sebesar $2.000 dibayar tunai
oleh PT X.
EXERCISE
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