RMIT Classification: Trusted

Financial Accounting​

Class 4
 RMIT Classification: Trusted

Accounting for Merchandising Companies

Annual revenue growth
 RMIT Classification: Trusted

Service vs
Merchandsing

Presentation title 3
 RMIT Classification: Trusted

Income for Merchandising Companies

Presentation title 4
 RMIT Classification: Trusted

1. Purchase inventory

Presentation title 5
 RMIT Classification: Trusted

Purchase inventory on account/on credit or cash

Presentation title 6
 RMIT Classification: Trusted

Shipping cost

• Charged to the buyer

Presentation title 7
 RMIT Classification: Trusted

Purchase return

Presentation title 8
 RMIT Classification: Trusted

Purchase discounts – Credit term

Presentation title 9
 RMIT Classification: Trusted

Purchase discount reduces the cost of Inventory

Presentation title 10
 RMIT Classification: Trusted

Settle the Accounts Payable with/without discounts

• With discount:

• Without discount:

Presentation title 11
 RMIT Classification: Trusted

General Ledger/T-account

Presentation title 12
 RMIT Classification: Trusted

2. Sales of inventory

Presentation title 13
 RMIT Classification: Trusted

Practice

Presentation title 14
 RMIT Classification: Trusted

Solution

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 RMIT Classification: Trusted

Credit sale of inventory

Presentation title 16
 RMIT Classification: Trusted

Shipping cost

Presentation title 17
 RMIT Classification: Trusted

Sales return

Presentation title 18
 RMIT Classification: Trusted

Sales discounts

• Credit term: 2/10, n/30

Presentation title 19
 RMIT Classification: Trusted

Practice

Presentation title 20
 RMIT Classification: Trusted

Solutions

Presentation title 21
 RMIT Classification: Trusted

Income Statement presentation of Net Sales

Presentation title 22
 RMIT Classification: Trusted

Presentation title 23
 RMIT Classification: Trusted

Thank you Nadia