Accounting for a Merchandising Business
Terms of Sale
An agreement between a buyer and a seller about payment for merchandise
Purchases Invoice
An invoice used as a source document for recording a purchase on account transaction
Corporation
An organization with the legal rights of a person and which many persons may own.
Stockholder
An owner of one or more shares of a corporation
Share of Stock
Each unit of ownership in a corporation
Merchandise
Goods that a business purchases to sell.
Capital Stock
Total shares of ownership in a corporation
Retail Merchandising Business
A merchandising business that sells to those who use or consume the goods.
Purchases Journal
A special journal used to record only purchases of merchandise on account
Purchase on Account
A transaction in which the merchandise purchased is to be paid for later
Vendor
A business from which merchandise is purchased or supplies or other assets are bought
Wholesale Merchandising Business
A business that buys and resells merchandise to retail merchandising businesses.
Merchandising Business
A business that purchases and sells goods.
Special Journal
A journal used to record only one kind of transaction.
Cost of Merchandise
The actual cost to the business of the merchandise sold to customers.
Markup
The amount added to the cost of merchandise to establish the selling price