ch 5 inventories - Merchandising operations Service revenue...

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Merchandising operations Service revenue Buy products first from other people and then sell it and put the label on. . Example: giant ! not all of the goods in giant are made of giants; giant by it from others. Cash perform services accounts receivable receive cash Merchandising company Cash becomes a big issue Merchandise inventory account: It is a current asset, not very liquid, but it’s more liquid than supplies. Inventory: by from one person and re-sell to other person without changing the item. Inventories: Most valuable asset on balance sheet Managing inventories is really important. 2 popular types of inventory control system 1. Perpetual system computerization = depend on computer , modern Easier, more efficient just need to put all of the data in computer system. 2. Periodic system (older) less detail than perpetual system Purchasing inventories: requiring asset. Purchase of resale merchandise on account
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This document was uploaded on 11/02/2011 for the course ACCOUNTING ac 201 at Montgomery.

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ch 5 inventories - Merchandising operations Service revenue...

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