Accounting.docx - Accounting in Business 1 Merchandise...

This preview shows page 1 - 2 out of 2 pages.

Accounting in Business1Merchandise InventoryJesus (Ernie) RodriguezThe Principles of Accounting IDr. SerapinAugust, 20 2012In this report, I will describe the items that are included in merchandise inventoryand to include, I will address the special situation of goods in transit, consignedgoods, and damaged goods.Items Included in Merchandise InventoryThe following items are included in the merchandise inventory in which a companyowns and holds for sale. Good transit, this is when goods have been purchased froma supplier and will be shipped to the business whom has gained the title ofownership once shipment has been paid for. An example of this is when we orderour paper rolls from the paper mills, we are paying for the shipment of these goodsin which we would be responsible to whatever happens to them. Second Inventoryitem is Goods on Consignment and this is when goods are shipped by the owner toanother party for that party to sell for the owner. Here is an example of that, lets
End of preview. Want to read all 2 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
N/A
Tags
Accounting, Sales, Larson, Chiappetta

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture