Accounting for revenue from sales in merchnadising company whichused the periodic inventory system is basically the same as that of amerchandising company which used the perpetual inventorysystem

Accounting for perchases of merchandise

Accounting for purchases returns and allowances

Freight in

Accounting for merchandise inventory cost of goods sold

Accounting for operating expenses in merchnadising companywhich used the periodic inventory system is basically the same as thatof a merchandising company which used the perpetual inventorysystem

End of the accounting period, income or loss is counted bypreparing the closing entries depend on whether usingincome summary account

The adjusting entry method

The closing entry method

Gross sales

Sales returns and allowances

Sales discounts

Net purchases and net cost of purchases

Accounting for purchases returns and allowances

Freight in

Accounting for merchandise inventory cost of goods sold

Operating expenses is the third major of theincome statement for a merchandisingconcern

include

End of the accounting period, income or loss is counted bypreparing the closing entries depend on whether usingincome summary account

The work sheet of a merchandising business perpetualinventory system is basically the same as that of a servicebusiness

Except that it has to deal with the new accounts

Revenue from sales

Cost of goods sold

Operating expenses

Trade discounts

Sales discounts

Shipping terms