🎯 Practical Case: Merchandising Operations
Your Mission
You're managing "TrendyGoods Store". Record purchases, sales, and calculate gross profit using the perpetual inventory system!
Step 1: Record Purchase Transactions
Transaction 1: Purchase with Discount Terms
Purchased $10,000 of merchandise on account, terms 2/10, n/30.
If paid within 10 days, what is the discount?
Transaction 2: FOB Shipping Point
Purchased $5,000 of merchandise, FOB Shipping Point. Freight cost = $300.
What is the total cost of inventory?
Step 2: Record Sales Transactions
Sale with Return
Sold merchandise for $8,000 cash (cost was $4,800). Customer returned $1,000 of goods (cost $600).
Step 3: Calculate Gross Profit
TRENDYGOODS STORE
Partial Income Statement
| Sales | $0 | |
| Less: Sales Returns | $0 | |
| Net Sales | $0 | |
| Cost of Goods Sold | $0 | |
| Gross Profit | $0 |
🎉 Well Done!
You've mastered merchandising accounting! Gross profit is the key metric for retail businesses.