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MERCHANDISING OPERATIONS.pptm - MERCHANDISING OPERATIONS...

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MERCHANDISINGOPERATIONSCHAPTER 7
Nature and Operating Cycle ofMerchandising BusinessMerchandising Business – a business enterprise which buysand sells merchandise without altering the form thereof.Purchase ofMerchandiseSale of merchandise on accountCollection ofthe receivables
SELLING PROCEDURESSTEPS OR PROCEDUREBUSINESS FORM USEDCustomer orders merchandise direct or through asalesmanSALES ORDERprepared by the salesman ofpurchase order from the customerMerchandise are packed and checked ready forshipmentA copy of sales order is used in determining thegoods for packing and shipmentMerchandise is shipped by freight, express or truckSALES INVOICEprepared by the seller and mailed tothe customer showing description, quantity andamount charged for the merchandiseDELIVERY RECEIPTprepared authorizing thetransportation of the merchandiseAdjustments are sometimes required for:Clerical ErrorDamaged MerchandiseShortagesReturned MerchandiseCREDIT MEMORANDUMis issued and mailed tocustomer advising him that his account has beenadjustedCustomer is asked to pay if he has not yet remittedASTATEMENT OF ACCOUNTis prepared and mailedto a customer showing the amount he owes formerchandise sold to himRemittance received from customerCustomer’s check or other instrument is entered inthe cash book and the issuance ofOFFCIAL RECEIPTto evidence collection.

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Term
Fall
Professor
N/A
Tags
Revenue, Sales, invoice, Returned Merchandise

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