Financial Accounting–Inventory & Merchandising Transactions
4.3 (85 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
13,623 students enrolled

Financial Accounting–Inventory & Merchandising Transactions

Merchandising transaction including purchase and sale of inventory, discounts, and returns. FIFO, LIFO, Average Methods
4.3 (85 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
13,623 students enrolled
Last updated 6/2019
English
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Current price: $139.99 Original price: $199.99 Discount: 30% off
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This course includes
  • 22 hours on-demand video
  • 39 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Assignments
  • Certificate of Completion
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What you'll learn
  • Inventory Costing
  • First In First Out (FIFO) cost flow method
  • Last In First Out (LIFO) cost flow method
  • Weighted average cost flow method
  • Periodic inventory method
  • Perpetual inventory method
  • Merchandising transactions
  • Record purchase of merchandise
  • Record the sale of merchandise
  • Perpetual and periodic inventory systems
  • Sales discount and purchase discount
  • Inventory shrinkage and sales returns
  • Financial statements for a merchandising company
  • Comprehensive problem of the entire accounting cycle
Requirements
  • We should have a basic understanding of financial accounting and debits and credits.
Description

We cover merchandising transactions and cost flow assumptions.

Merchandising transaction, those transaction that deal with inventory, including the purchase of inventory and the sale of inventory. We will discuss related topics including sales discounts, purchase discounts, sales return and allowances, shrinkage and the cost of goods sold calculation. We will also compare and contrast a perpetual inventory system and periodic inventory system, listing and describing the pros and cons of each, explaining when each may be most appropriate in practice.  

Inventory costs and cost flows, including what is included in the cost of inventory and how to account for inventory freight costs, inventory insurance costs, and discount. We also discuss inventory flow assumptions including specific identification, first in first out (FIFO), last in first out (LIFO), and weighted average methods. FIFO, LIFO and weighted average methods will be discussed using both a periodic inventory system and a perpetual inventory system. 

In addition to instructional video, this course will include downloadable

•    Downloadable PDF Files

•    Excel Practice Files

•    Multiple Choice Practice Questions

•    Short Calculation Practice Questions

•    Discussion Questions

The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material.

Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships.

Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple choice questions and discussing how to approach these questions.

Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple choice questions.

Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints.

Who will we be learning from?

You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.

You will be learning from somebody who is a:

•    CPA – Certified Public Accountant

•    CGMA – Chartered Global Management Accountant

•    Master of Science in Taxation

•    CPS – Certifies Post-Secondary Instructor

•    Curriculum Development Export

As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.

As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.

The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.

Summary of what will be covered: 

  • Merchandising Transaction
  • Purchase of merchandise or inventory
  • Sale of merchandise or inventory
  • Perpetual and Periodic Inventory System
  • We will compare and contrast the perpetual and periodic inventory systems. 
  • Sales Discount & Purchase Discount
  • It is easy to get the sales discount and purchase discount confused and mixed up. We will discuss both transactions and how to record them. 
  • Inventory Shrinkage & Sales Returns. 
  • Inventory Shrinkage has do do will  loss of inventory, the problem being how to know it is lost and how to record the loss. Sales return are when inventory is returned after a sale. We will record transactions related to sales returns. 
  • Financial Statements - Merchandising Company
  • Financial statements, especially the income statement, are typically more complex for merchandising companies then service companies. 
  • Comprehensive Problems
    • We will have to comprehensive problems, on focused on financial transactions, more of a mid sized problem. The second comprehensive problem will cover the full accounting cycle for a merchandising company, the recording of financial transaction, adjusting entries, financial statements, and closing process. 
    • Inventory Tracking methods
      • Specific identification method
      • First in first out (FIFO) method
      • Last in first out (LIFO) method
      • Weighted average method
    • Inventory costs
      • Fright
      • Insurance
      • Purchase discounts
    • Periodic system verses a perpetual system. 
      • We discuss FIFO, LIFO, and weighted average under each system. 
    • Key definitions
    • Comprehensive problem
    Who this course is for:
    • Accounting students
    • Business owner
    • Anyone who whats to learn accounting
    Course content
    Expand all 186 lectures 21:55:31
    + Introduction
    1 lecture 09:01
    What is inventory?
    Discussion Question 1
    1 question
    + Part 1 - Accounting Fundamentals and Merchandising Accounting Cycle
    8 lectures 36:45
    200 Journal Entry Thought Process - How To Record Journal Entries
    10:13
    PDF - 1 Operating Cycle
    00:08
    Describe the difference between a periodic and perpetual inventory system.
    Discussion Question 2
    1 question
    Accounting Comic Break
    00:15
    Accounting Comic Break
    00:14
    + Part 1 Merchandising Transactions Overview
    8 lectures 19:51
    3 Merchandising Transactions Overview
    00:51
    PDF - 20 Merchandising transaction intro
    00:08
    20 500 - Merchandising Transaction Explained Purchaser and Se
    05:53
    PDF - 30 Merchandising Transaction purchase on account
    00:08
    30 500 Merchandising Transaction Journal Entry Purchaser
    05:16
    PDF - 40 Merchandising sale journal entry
    00:08
    40 500 Merchandising Transaction Sales Journal Entry - COGS Jou
    07:12
    Describe the operating cycle for a merchandising company.
    Discussion Question 3
    1 question
    Accounting Comic Break
    00:15
    + Part 1 Perpetual and Periodic Inventory Systems
    12 lectures 02:07:19
    4 Perpetual and Periodic Inventory Systems Overview
    01:22
    PDF - 5 Periodic Inventory System
    00:08
    10 Periodic Inventory System
    22:30
    Excel Download
    00:05
    Worksheet Periodic System
    31:34
    PDF - 10 Perpetual Inventory System
    00:08
    5 Perpetual Inventory System
    18:36
    Excel Download
    00:05
    Worksheet - Perpetual Inventory System
    35:37
    PDF - 15 Perpetual vs Periodic
    00:08
    15 Perpetual vs. Periodic Inventory System
    16:50
    What does FOB mean and how is it used?
    Discussion Question 4
    1 question
    Accounting Comic Break
    00:16
    + Part 1 Sales Discount & Purchase Discount
    11 lectures 55:36
    5 Sales Discount %26 Purchase Discount Overview
    01:09
    PDF - 50 Sales discount vs purchase discount
    00:08
    50 500 Sales Discount VS. Purchase Discount
    05:39
    PDF - 60 Merchandising Transaction purchase on account DIscount
    00:08
    60 500 Purchase Discount Journal Entry Explained
    06:35
    PDF - 70 Sales discount journal entry
    00:08
    70 500 Sales Discount Explained Journal Entry Record Discou
    07:18
    Excel Download
    00:05
    Worksheet Purchase Discount & Sales Discount
    23:35
    10 Multiple Choice Questions Merchandising Company
    10:36
    Discuss the differences between a single step and multiple-step income statements.
    Discussion Question 5
    1 question
    Accounting Comic Break
    00:15
    + Part 1 Inventory Shrinkage & Sales Return
    10 lectures 51:17
    6 Inventory Shrinkage %26 Sales Returns
    00:56
    PDF - 90 Inventory Shrinkage
    00:08
    90 Inventory Shrinkage
    09:06
    Excel Download
    00:05
    Worksheet - Inventory Shrinkage
    11:58
    PDF - 100 Sales Return
    00:08
    100 Sales Return & Allowance Transaction
    16:00
    Excel Download
    00:05
    Worksheet - Sales Return
    12:51
    Describe the cost of goods sold calculations.
    Discussion Question 6
    1 question
    Accounting Comic Break
    Processing..
    + Part 1 Financial Statements - Merchandising Company
    7 lectures 01:13:16
    7 Financial Statements - Merchandising Company
    01:11
    Single Step Income Statement Review
    06:56
    110 500.20 Merchandising Financial Statements-Accounting instructions
    25:36
    20 Multiple Choice Questions Merchandising Company
    18:35
    Short Calculation 1
    11:04
    30 Multiple Choice Questions Merchandising Company
    09:39
    Describe gross profit and hot is used.
    Discussion Question 7
    1 question
    Accounting Comic Break
    00:15
    + Part 1 Merchandising Transaction Problem
    7 lectures 01:18:15
    Excel Download
    00:05
    500.10 Merchandising Ex Part 1-Accounting%2C Financial (2)
    15:03
    500.20 Merchandising Ex Part 2-Accounting%2C Financial (1)
    15:11
    500.30 Merchandising Ex Part 3-Accounting%2C Financial (1)
    15:08
    500.40 Merchandising Ex Part 4-Accounting%2C Financial (1)
    14:10
    Short Calculation 2
    18:23
    Define and discuss inventory shrinkage.
    Discussion Question 8
    1 question
    Accounting Comic Break
    00:15
    + Part 1 Definitions & Key Terms
    22 lectures 53:11
    45 Invoice Definition - What is Invoice%3F
    02:21
    Cash Discount Definition - What is a Cash Discount%3F
    02:30
    Credit Memorandum Definition - What is a Credit Memorandum%3F
    02:53
    Credit Period Definition -What is a Credit Period%3F
    01:39
    Credit Terms Definition -What are Credit Terms%3F
    02:02
    FOB Definition%2C Free on Board - FOB Shipping Point - FOB Destination - What is
    02:36
    Gross Margin Definition - What is Gross Margin%3F
    02:14
    Gross Margin Ratio Definition
    02:52
    Gross Profit Definition - What is Gross Profit%3F
    02:18
    Gross Profit Ratio Definition - What is gross profit ratio
    02:47
    Inventory Definition
    01:53
    Merchandise Definition
    02:03
    Multiple-Step Income Statement Definition - What is a Multiple-Step Income State
    02:43
    Periodic Inventory System Definition - What is Periodic Inventory System%3F
    04:10
    Perpetual Inventory System Definition - What is Perpetual Inventory System%3F
    03:17
    Purchase Discount Definition - What is Purchase Discount%3F
    03:40
    Sales Discount Definition - What is sales discount%3F
    03:30
    Shrinkage Definition - What is Shrinkage%3F
    01:34
    Single-Step Income Statement - What is a Singe-Step Income S
    02:50
    Trade Discount Definition - What is a Trade Discount
    01:14
    Wholesaler Definition - What is a Wholesaler%3F
    01:50
    Accounting Comic Break
    00:15