Accounting for Basic Merchandising Transactions Learning Objectives

Merchandising is the process of buying and selling ______

Merchandise refers to goods for sale in the ordinary course of business ______

Merchandise purchases and sales are predominant transactions in a merchandising ______

Merchandising has been one of the most visible businesses in our ______

Account for merchandise returns, ______ and credit discounts

Prepare the basic financial statements of a merchandising ______

The merchandising business buys goods from merchandise suppliers, sells them “as is” to customers, and collects its ______.

In contrast to servicing business, the unique transaction in merchandising is the buying and selling of the ______.

A merchandising business deals with its suppliers at the back (ie, back end) and to its customers at the front (ie, front end). There are three (3) important persons in the merchandising transactions. They are the producer, merchandiser, and ______.

A producer is the manufacturer of the goods bought by the ______.

A consumer utilizes serves as the broker or spends the utility between the of the goods supplier and the ______.

The following are the usual business documents used in merchandising transactions: BUSINESS DOCUMENTS ISSUED BY MEMO Purchase Order Buyer Details the quantity, specifications, significant dates, buyer, and other important matters with regard to the merchandise being ______.

Receiving Report Buyer Validates the details of the merchandise ______.

Sales Invoice Seller This is a more formal document confirming the transaction entered into by the seller and the buyer with the needed transaction details such as the ______ terms.

Official Receipt Seller A document confirming seller's receipt of money from the ______.

Delivery Receipt Seller A formal communication to the buyer reminding him of his purchase and its related ______ terms.