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  • Summary of Merchadising Entries & Format of Soci

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    Jian Zhi Teh
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    The document summarizes common merchandising journal entries for transactions such as purchasing inventory, sales to customers, returns and allowances, freight costs, discounts, and payments. Key journal entries include debiting merchandise inventory and crediting cash or accounts payable for purchases, debiting cash or accounts receivable and crediting sales for sales, and debiting cost of goods sold and crediting merchandise inventory for the cost of inventory sold.

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    Financial Accounting

    Original Title

    29619_summary of Merchadising Entries & Format of Soci

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    The document summarizes common merchandising journal entries for transactions such as purchasing inventory, sales to customers, returns and allowances, freight costs, discounts, and payments. Key journal entries include debiting merchandise inventory and crediting cash or accounts payable for purchases, debiting cash or accounts receivable and crediting sales for sales, and debiting cost of goods sold and crediting merchandise inventory for the cost of inventory sold.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    38 views3 pages

    Summary of Merchadising Entries & Format of Soci

    Uploaded by

    Jian Zhi Teh
    The document summarizes common merchandising journal entries for transactions such as purchasing inventory, sales to customers, returns and allowances, freight costs, discounts, and payments. Key journal entries include debiting merchandise inventory and crediting cash or accounts payable for purchases, debiting cash or accounts receivable and crediting sales for sales, and debiting cost of goods sold and crediting merchandise inventory for the cost of inventory sold.

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    © All Rights Reserved
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    of 3

    SUMMARY OF MERCHADISING ENTRIES

    TRANSACTIONS

    ONSTRANSACTIPURCHASE

    SALES TRANSACTIONS

    Selling merchandise to
    customers

    JOURNAL ENTRIES

    Dr

    Cash @ Account Receivable


    Sales

    XX

    Cost of Goods Sold


    Merchandise Inventory

    XX

    Sales Return and Allowances


    Cash @ Account Receivable

    XX

    Merchandise Inventory
    Cost of Goods Sold

    XX

    Paying freight costs on


    sales; FOB destination

    Freight out
    Cash

    XX

    Receiving payment from


    customer within discount
    period

    Cash
    Sales Discount
    Account Receivable

    XX
    XX

    Purchasing merchandise for


    resale

    Merchandise Inventory
    Cash @ Account Payable

    XX

    Paying freight costs on


    merchandise purchased;
    FOB shipping point

    Merchandise Inventory
    Cash

    XX

    Receiving purchase returns


    or allowances from
    suppliers

    Cash @ Account Payable


    Merchandise Inventory

    XX

    Paying suppliers within


    discount period

    Account Payable
    Merchandise Inventory
    Cash

    XX

    Granting sales returns or


    allowances to customer

    Cr

    XX
    XX

    XX
    XX

    XX

    XX
    XX

    XX

    XX

    XX
    XX

    A) Multiple Income Statements


    ABC COMPANY
    Statement of Comprehensive Income
    For the Year Ended 31 December 20xx
    RM
    Sales
    Revenue
    Sales
    (-) Sales Return & Allowances
    (-) Sales Discount
    Net Sales
    Less: Cost of good sold (COGS)
    Opening Stock/Inventory
    Purchase
    (-) Purchase return & Allowances
    (-) Purchase Discount
    Net Purchases
    Cost of good available for sales

    RM

    xxx
    xxx
    xxx
    xxx
    xxx
    xxx

    (xxx
    )
    xxx
    xxx
    (xxx
    )
    (xxx)
    xxxx

    xxx
    xxx

    Store Salaries Expenses

    xxx

    Administrative Expenses
    Utilities Expenses
    Depreciation Expenses

    xxx
    xxx

    Admin Salaries

    (xxx)
    xxx

    xxx

    (-) Closing stock/inventory


    COGS
    Gross Profit
    Less: Operating Expenses
    Selling Expenses
    Freight Out (Delivery Expenses)
    Advertising Expenses

    RM

    xxx

    xxx
    x

    xxx
    x
    (xxxx
    )
    xxxx

    Total Operating Expenses


    Income from operation
    Add: Other revenue and gains
    Interest revenue
    Gain from sales of assets

    xxx
    xxx

    xxx

    Less: Other Expenses and losses


    Interest expenses
    Loss from sales of assets

    xxx
    xxx

    (xxx
    )

    xxx

    Net Income/Profit

    xxxx

    B) Single step Income


    Statements
    ABC COMPANY
    Statement of Comprehensive Income
    For the Year Ended 31 December 20xx
    RM
    Revenue
    Net sales
    Service Revenue
    Interest Revenue
    Gain on sale of
    assets
    Total Revenue
    Less: Expenses
    Cost of goods sold
    Selling expenses
    Administrative Expenses
    Interest expenses
    Loss from sales of assets
    Depreciation Expenses
    Total Expenses
    Net Income/Profit

    RM
    xxx
    xxx
    xxx
    xxx
    xxx

    xxx
    xxx
    xxx
    xxx
    xxx
    xxxx
    xxxx

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