Presentation is loading. Please wait.

Presentation is loading. Please wait.

Accounting for Sales and Cash Receipts

Similar presentations


Presentation on theme: "Accounting for Sales and Cash Receipts"— Presentation transcript:

1 Accounting for Sales and Cash Receipts
Chapter 14 $ Accounting for Sales and Cash Receipts $ Making Accounting Relevant Sales of products or services generate revenue for a business. $ If you work at a retail business, what sales transaction have you participated in? Discuss the actions involved in the sale. $

2 $ $ $ $ Section 1 Accounting for a Merchandising Business
Chapter 14 $ Section 1 Accounting for a Merchandising Business $ What You’ll Learn The purpose of a merchandising business. The difference between a retailer and a wholesaler. Uses of the Merchandise Inventory account, and its rules of debit and credit. Uses of the Sales account, and its rules of debit and credit. $ $

3 $ $ $ $ Why It’s Important Key Terms Chapter 14 retailer wholesaler
Section 1 Accounting for a Merchandising Business (cont'd.) Chapter 14 $ Why It’s Important As consumers, we buy goods from merchandising businesses daily. You need to understand the nature of these transactions to maintain accounting records for a merchandising business. $ $ Key Terms retailer wholesaler merchandise $ inventory sales

4 $ $ $ $ The Operating Cycle of a Merchandising Business Chapter 14
Section 1 Accounting for a Merchandising Business (cont'd.) Chapter 14 $ The Operating Cycle of a Merchandising Business $ $ $

5 Merchandise Inventory
Section 1 Accounting for a Merchandising Business (cont'd.) Chapter 14 $ Merchandise Inventory Account Goods bought for resale are called merchandise. The items of merchandise the business has in stock are referred to as inventory. The inventory is represented in the general ledger by the asset account Merchandise Inventory. $ $ Merchandise Inventory $ Debit + Increase Side Normal Balance Credit Decrease Side

6 $ $ $ $ Sales Account Chapter 14
Section 1 Accounting for a Merchandising Business (cont'd.) Chapter 14 $ Sales Account When a retail merchandising business sells goods to a customer, the amount of the merchandise sold is recorded in the Sales account. $ $ Sales $ Debit Decrease Side Credit + Increase Side Normal Balance

7 $ $ $ $ Check Your Understanding Chapter 14
Section 1 Accounting for a Merchandising Business (cont'd.) Chapter 14 $ Check Your Understanding $ What type of account is Merchandise Inventory? $ $


Download ppt "Accounting for Sales and Cash Receipts"

Similar presentations


Ads by Google