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Merchandising transaction, those transactions that deal with inventory, including the purchase of inventory and the sale of inventory. We will discuss related topics including sales discounts, purchase discounts, sales return and allowances, shrinkage, and the cost of goods sold calculation. We will also compare and contrast a perpetual inventory system and periodic inventory system, listing and describing the pros and cons of each, explaining when each may be most appropriate in practice. In addition to instructional video, this course will include downloadable • Downloadable PDF Files • Excel Practice Files • Multiple Choice Practice Questions • Short Calculation Practice Questions • Discussion Questions The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material. Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships. Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple-choice questions and discussing how to approach these questions. Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple-choice questions. Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints. Summary of what will be covered: 1. Inventory Shrinkage & Sales Returns Inventory Shrinkage has done will loss of inventory, the problem is how to know it is lost, and how to record the loss. Sales return is when inventory is returned after a sale. We will record transactions related to sales returns. 2. Financial Statements - Merchandising Company Financial statements, especially the income statement, are typically more complex for merchandising companies than service companies. 3. Comprehensive Problems We will have to comprehensive problems, focused on financial transactions, more of a mid-sized problem. The second comprehensive problem will cover the full accounting cycle for a merchandising company, the recording of financial transactions, adjusting entries, financial statements, and closing process. Prerequisites: Part 1 of Merchandising Transaction Who is the target audience? Accounting students Business owner Anyone who whats to learn accounting