Accounting for a Merchandising Business – Inventory

Discussion:

  • What is a merchandising business?
  • How is it different from a service business?

Discussion:

  • Wholesaler vs. Retailer
    What is inventory?
  • Why is it so critical?

Discussion: Two Aspects – BS (Current Asset) and IS (COGS)
Periodic vs. Perpetual inventory systems – The Inventory Cycle
What is COGS? – calculation and using the equation
Complete Exercise 1 and 2 together

Additional Review and Practice:

Read 396-401

Questions 1-17

Exercises 2-5

Practice and Review Period

  • Page 300 Exercise 4 Complete B,C,D
  • Page 324 Exercise 5 Complete the adjusting entries, closing entries and prepare a post closing trial balance

Monday May 8th

  1. Source Documents and Posting
  2. Adjusting and Closing Entries
  3. Depreciation Schedules

Respect, Achievement, Diversity, Citizenship, Responsibility