Accounting Cycle For Merchandising Activities
Accounting Cycle For Merchandising Activities
Accounting Cycle For Merchandising Activities
for Merchandising
Activities
-the process is like the cycle for
service activity.
What are the objectives
of merchandising?
Purchase Discount
Sales
Key to Sales Discount
Trade Discount
1. Sold merchandise on account costing P8,000 for P10,000; terms were 2/10, n/30.
Periodic Perpetual
Accounts Receivable P10,000 Accounts Receivable P10,000
Inventory P8,000
Comparison of Periodic & Perpetual Inventory System
2. Customer returned merchandise costing P400 that had been sold on account for
P500(part of the P10,000 sale).
Periodic Perpetual
Sales Return & Allowances 500 Sales Return & Allowances 500
Inventory 400
Periodic Perpetual
Cash 9,310 Cash 9,310
4. Purchased on account merchandise for resale for P6,000; terms were 2/10, n/30.
Periodic Perpetual
Purchases 6,000 Inventory 6,000
5. Paid P200 freight on the P6,000 purchase; terms were FOB Shipping point, freight
collect.
Periodic Perpetual
Freight In 200 Inventory 200
Periodic Perpetual
Accounts Payable 300 Accounts Payable 300
Periodic Perpetual
Accounts Payable 5,700 Accounts Payable 5,700