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Business LibreTexts

5: Accounting for the Sale of Goods

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  • Page ID
    20098

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    • Contributed by Henry Dauderis and David Annand
    • Athabasca University
    • Sourced from Lyryx Learning

    Learning Objectives

    • LO1 – Describe merchandising and explain the financial statement components of sales, cost of goods sold, merchandise inventory, and gross profit; differentiate between the perpetual and periodic inventory systems.
    • LO2 – Analyze and record purchase transactions for a merchandiser.
    • LO3 – Analyze and record sales transactions for a merchandiser.
    • LO4 – Record adjustments to merchandise inventory.
    • LO5 – Explain and prepare a classified multiple-step income statement for a merchandiser.
    • LO6 – Explain the closing process for a merchandiser.
    • LO7 – Explain and identify the entries regarding purchase and sales transactions in a periodic inventory system.