Accounting for Purchase and Sale of Inventory

Course details

In this course, the accounting for inventory in merchandising companies is presented. Both the purchase and sales sides of the transactions will be analyzed, along with sales tax and physical inventory practices. Differences in accounting for both Free On Board (FOB) points will be explained along with dealing with payment discounts. 

The Income Statement is expanded to a Multi-Step Income Statement to accommodate the additional information needed to be presented by a merchandising company. Additionally, contra-accounts are added to the list of accounting tools.