PRINCIPLES OF ACCOUNTING.pdf - 5 Misr University for...

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5Misr University for Science & TechnologyFaculty of Business, Economics and Information SystemResearch Submitted by:Fares Sarwat AhmedStudent ID:88315Course name: principles Of AccountingCourse Code: ACC 101Research TitleIdentify the difference between service and merchandisingcompanies, explain the recording of sales, and purchasesunder a periodic inventory system, and explain types ofadjusting entriesSupervised by:Dr. Ghada nabilSpring 2019 / 2020
2Table of contentsPageI.ABSTRACT3II.INTRODUCTION4III.Difference between service and merchandising companies5-8IV.periodic inventory system9 - 12V.Multiple steps of income statements:13 - 18VI.TYPES OF ADJUSTING ENTRIES19 - 21VII.CONCLUSION22VIII.DATA COLLECTION METHOD23IX.REFRENCES24
3Abstract:Purpose:The purpose of this research is explain the recording of sales, and purchases undera periodic inventory system and explain in details service and merchandisingcompaniesKeywords:Merchandising, services, periodic inventoryPaper type:Research paper
4Introduction:Merchandising and services is one of the largest and most influential industries in Egypt, inthis research I will explain the basics about reporting merchandising transactionsA servicecompany is a business that provides services to consumers or other companies. For example, anaccounting firm provides accounting services to individuals or other businesses, while a hairsalon offers haircuts, styling and other hair care services to its customers. A merchandisingcompany buys inventory in bulk and then deliver these products to its customers, usually otherbusinesses. A clothing boutique might buy its jewelry and accessories from a merchandiser whospecializes in clothing accessories.
5Difference between service and merchandising companies:Merchandising companies: -A merchandising company buys tangible goods and resells them to consumers. Thesebusinesses incur costs, such as labor and materials, to present and sell products. Retail andwholesale companies are the two types of merchandising companies. Retail companies sellproducts directly to consumers, and wholesale companies sell products directly to retailers orother wholesalers. The operating cycle of a merchandising company is the time between thepurchase of the product and the sale of that product.. Good examples of merchandisingbusinesses include retail clothing, grocery stores and bookstores. Some businesses produce thegoods they sell, while other merchandise businesses buy and sell goods they have purchasedwholesale. Alternatively, it could be a combination of the two.Accounting for merchandising operations:-MerchandisingOperationsRecordingpurchases ofmerchandiseRecordingsalesmerchandiseCompletingtheAccountingcycleForms offinancialstatements-operatingcycles-Flow of costs-perpetual andperiodicinventorysystem-freight costs-purchasereturns andallowances-purchasediscounts-summary ofpurchasingtransaction-sales returnsandallowances-salesdiscounts-Adjustingentries-Closingentries

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Term
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Tags
Income Statement, Revenue, Generally Accepted Accounting Principles

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