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Ch 6: Merchandising Operations and Inventory in Accounting: Tutoring Solution

About This Chapter

The Merchandising Operations and Inventory in Accounting chapter of this College Financial Accounting Tutoring Solution is a flexible and affordable path to learning about inventory and merchandising operations. These simple and fun video lessons are each about five minutes long and they teach all of the information involving merchandising operations and inventory required in a typical college financial accounting course.

How it works:

  • Begin your assignment or other financial accounting work.
  • Identify the merchandising and inventory concepts that you're stuck on.
  • Find fun videos on the topics you need to understand.
  • Press play, watch and learn!
  • Complete the quizzes to test your understanding.
  • As needed, submit a question to one of our instructors for personalized support.

Who's it for?

This chapter of our college financial accounting tutoring solution will benefit any student who is trying to learn merchandising operations and inventory in accounting and earn better grades. This resource can help students including those who:

  • Struggle with understanding inventory cost, accounting for inventory sales, reconciling the bank account after purchases and sales or any other merchandising operations and inventory topic
  • Have limited time for studying
  • Want a cost effective way to supplement their accounting learning
  • Prefer learning accounting visually
  • Find themselves failing or close to failing their merchandising operations and inventory in accounting unit
  • Cope with ADD or ADHD
  • Want to get ahead in financial accounting
  • Don't have access to their accounting teacher outside of class

Why it works:

  • Engaging Tutors: We make learning merchandising operations and inventory simple and fun.
  • Cost Efficient: For less than 20% of the cost of a private tutor, you'll have unlimited access 24/7.
  • Consistent High Quality: Unlike a live financial accounting tutor, these video lessons are thoroughly reviewed.
  • Convenient: Imagine a tutor as portable as your laptop, tablet or smartphone. Learn merchandising operations and inventory in accounting on the go!
  • Learn at Your Pace: You can pause and rewatch lessons as often as you'd like, until you master the material.

Learning Objectives

  • Define merchandising companies.
  • Describe the items that make up merchandising inventory.
  • Discuss the different types of inventory cost.
  • Explain the accounting procedures for inventory purchases.
  • Differentiate between perpetual and periodic inventory systems.
  • Use a perpetual system to record purchases.
  • Explain the accounting procedures for inventory sales.
  • Use a perpetual system to record sales.
  • Learn how to reconcile bank accounts after purchases or sales.
  • Describe the different methods for inventory counting.
  • Take a look at different inventory valuation methods.
  • Explain why it is important to evaluate the level of inventory.
  • Learn how costing methods are affected by financial statements.
  • Understand how inventory errors affect current and future financial statements.
  • Describe how to use the net realizable value of inventory.
  • Discuss the use of lower of cost or market of inventory.

20 Lessons in Chapter 6: Merchandising Operations and Inventory in Accounting: Tutoring Solution
Test your knowledge with a 30-question chapter practice test
Merchandising Company: Definition, Activities & Income Components

1. Merchandising Company: Definition, Activities & Income Components

Do you know what a merchandising company is? If you said it's a store, you are right. It is a store, but it is also so much more. In this lesson, we are going to discuss some of the major components of a merchandising company.

Items that Make Up Merchandise Inventory

2. Items that Make Up Merchandise Inventory

In order to operate, merchandising companies must carry inventory. What exactly makes up merchandise inventory? In this lesson, you will not only learn the answer to that question, but also several other important factors that relate to merchandise inventory.

Inventory Cost: Definition, Methods & Types

3. Inventory Cost: Definition, Methods & Types

Have you ever thought about how much it costs a business to keep inventory in stock? It's not just the price the business pays for the items that it keeps in stock. It is so much more. In this lesson, we will discuss exactly what constitutes actual inventory cost.

Accounting for Inventory Purchases

4. Accounting for Inventory Purchases

A merchandising company must purchase inventory, and it has to be accounted for in the accounting records. In this lesson, you will learn how to calculate inventory purchase amounts as well as how to record them in the accounting journals.

Perpetual and Periodic Inventory Systems

5. Perpetual and Periodic Inventory Systems

Inventory management is an important part of business success. In this lesson, we will discuss the two types of inventory systems used in accounting today.

Recording Purchases Using the Perpetual System

6. Recording Purchases Using the Perpetual System

Every transaction that occurs in a business, whether it is a purchase or a sale, must be accounted for. In this lesson, you will learn how to record purchases using the perpetual inventory system.

Accounting for Inventory Sales

7. Accounting for Inventory Sales

In order to operate, a business must make sales. In this lesson, we are going to discuss sales of inventory. You will learn the types of sales made, the items that affect sales profit, and the way to record sales in the accounting records.

Recording Sales Using the Perpetual System

8. Recording Sales Using the Perpetual System

Each transaction that occurs in a business has an impact on at least two or more accounts. Because of that, recording transactions is essential. In this lesson, you will learn about recording sales transactions using the perpetual inventory system.

Reconciling the Bank Account After Purchases or Sales

9. Reconciling the Bank Account After Purchases or Sales

Even if your accounting skills are top notch, you still should make sure that the books have been reconciled with the bank account in question. This lesson explains why.

Inventory Counting: Process & Methods

10. Inventory Counting: Process & Methods

It is important for any business to know how much and what types of items that they have available to sell. In this lesson, you will learn what inventory is, how to count it, and why it is important.

Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

11. Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

This lesson introduces you to the cost flow assumption methods of specific identification: FIFO, LIFO, and weighted average. You will also learn how to compute inventory in a perpetual system using the methods of FIFO, LIFO, and weighted average.

The Importance of Evaluating Investment Management

12. The Importance of Evaluating Investment Management

Whether you're an individual or the financial manager of a company, the ability to evaluate your investment managers is a valuable skill in order to make sure that you are investing as much as possible.

The Effects of Financial Statements on Costing Methods

13. The Effects of Financial Statements on Costing Methods

The way you calculate the cost of your inventory can change the profit you show on your financial statement. Learn how one method can show higher profits, while the other method can give you tax benefits.

The Effects of Inventory Errors

14. The Effects of Inventory Errors

For companies, a miscount of inventory can be a serious issue. In this lesson we'll look at the effects of inventory errors on companies, both with respect to profits and how the error should be recorded.

Net Realizable Value of Inventory: Definition & Method

15. Net Realizable Value of Inventory: Definition & Method

Calculating inventory value is essential for correct reporting in accounting records. In this lesson, we are going to discuss what net realizable value is and why it plays an important role in inventory valuation.

The Lower of Cost or Market of Inventory: Definition & Method

16. The Lower of Cost or Market of Inventory: Definition & Method

No matter what kind of inventory a company has, that inventory has value. In this lesson, we'll talk about valuing inventory using the lower of cost or market rule.

Bid Price vs. Ask Price

17. Bid Price vs. Ask Price

In this lesson we explain how the bid price and ask price that appear in stock quotes works as well as the reason for the difference in these two prices.

Sales Returns & Allowances: Definition & Examples

18. Sales Returns & Allowances: Definition & Examples

Sometimes a customer returns products he/she purchased to a company because they are defective. In this lesson, you will learn more about sales returns and allowances.

Point of Sale Terminal: Definition, Advantages & Examples

19. Point of Sale Terminal: Definition, Advantages & Examples

After reading this lesson, you'll know what a point of sale terminal is and how useful it is for businesses of all sizes. You'll see that there are different types for different businesses and needs.

Credit Period: Definition, Formula & Example

20. Credit Period: Definition, Formula & Example

After reading this lesson, you'll get a better understanding of how businesses determine how quickly they want you to pay. Learn why some businesses will approve 30-day payment or even 45-day payment.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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