Financial Accounting–Inventory & Merchandising Transactions

Merchandising transaction including purchase and sale of inventory, discounts, and returns. FIFO, LIFO, Average Methods

4.40 (208 reviews)
Udemy
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English
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Operations
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33,672
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22 hours
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Nov 2022
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$84.99
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What you will 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

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

    Content

    Introduction

    Introduction

    Part One - Merchandising Transactions

    Part One - Merchandising Transaction

    Part 1 - Accounting Fundamentals and Merchandising Accounting Cycle

    2 Accounting Fundamentals and Merchandising Accounting Cycle
    100.90 Accounting Building Blocks (1)
    200 Debits %26 Credits Normal Balance - Double Entry Accounting Sy
    200 Journal Entry Thought Process - How To Record Journal Entries
    PDF - 1 Operating Cycle
    1 Accounting Cycle Merchandising Company
    Accounting Comic Break
    Accounting Comic Break

    Part 1 Merchandising Transactions Overview

    3 Merchandising Transactions Overview
    PDF - 20 Merchandising transaction intro
    20 500 - Merchandising Transaction Explained Purchaser and Se
    PDF - 30 Merchandising Transaction purchase on account
    30 500 Merchandising Transaction Journal Entry Purchaser
    PDF - 40 Merchandising sale journal entry
    40 500 Merchandising Transaction Sales Journal Entry - COGS Jou
    Accounting Comic Break

    Part 1 Perpetual and Periodic Inventory Systems

    4 Perpetual and Periodic Inventory Systems Overview
    PDF - 5 Periodic Inventory System
    10 Periodic Inventory System
    Excel Download
    Worksheet Periodic System
    PDF - 10 Perpetual Inventory System
    5 Perpetual Inventory System
    Excel Download
    Worksheet - Perpetual Inventory System
    PDF - 15 Perpetual vs Periodic
    15 Perpetual vs. Periodic Inventory System
    Accounting Comic Break

    Part 1 Sales Discount & Purchase Discount

    5 Sales Discount %26 Purchase Discount Overview
    PDF - 50 Sales discount vs purchase discount
    50 500 Sales Discount VS. Purchase Discount
    PDF - 60 Merchandising Transaction purchase on account DIscount
    60 500 Purchase Discount Journal Entry Explained
    PDF - 70 Sales discount journal entry
    70 500 Sales Discount Explained Journal Entry Record Discou
    Excel Download
    Worksheet Purchase Discount & Sales Discount
    10 Multiple Choice Questions Merchandising Company
    Accounting Comic Break

    Part 1 Inventory Shrinkage & Sales Return

    6 Inventory Shrinkage %26 Sales Returns
    PDF - 90 Inventory Shrinkage
    90 Inventory Shrinkage
    Excel Download
    Worksheet - Inventory Shrinkage
    PDF - 100 Sales Return
    100 Sales Return & Allowance Transaction
    Excel Download
    Worksheet - Sales Return
    Accounting Comic Break

    Part 1 Financial Statements - Merchandising Company

    7 Financial Statements - Merchandising Company
    Single Step Income Statement Review
    110 500.20 Merchandising Financial Statements-Accounting instructions
    20 Multiple Choice Questions Merchandising Company
    Short Calculation 1
    30 Multiple Choice Questions Merchandising Company
    Accounting Comic Break

    Part 1 Merchandising Transaction Problem

    Excel Download
    500.10 Merchandising Ex Part 1-Accounting%2C Financial (2)
    500.20 Merchandising Ex Part 2-Accounting%2C Financial (1)
    500.30 Merchandising Ex Part 3-Accounting%2C Financial (1)
    500.40 Merchandising Ex Part 4-Accounting%2C Financial (1)
    Short Calculation 2
    Accounting Comic Break

    Part 1 Definitions & Key Terms

    45 Invoice Definition - What is Invoice%3F
    Cash Discount Definition - What is a Cash Discount%3F
    Credit Memorandum Definition - What is a Credit Memorandum%3F
    Credit Period Definition -What is a Credit Period%3F
    Credit Terms Definition -What are Credit Terms%3F
    FOB Definition%2C Free on Board - FOB Shipping Point - FOB Destination - What is
    Gross Margin Definition - What is Gross Margin%3F
    Gross Margin Ratio Definition
    Gross Profit Definition - What is Gross Profit%3F
    Gross Profit Ratio Definition - What is gross profit ratio
    Inventory Definition
    Merchandise Definition
    Multiple-Step Income Statement Definition - What is a Multiple-Step Income State
    Periodic Inventory System Definition - What is Periodic Inventory System%3F
    Perpetual Inventory System Definition - What is Perpetual Inventory System%3F
    Purchase Discount Definition - What is Purchase Discount%3F
    Sales Discount Definition - What is sales discount%3F
    Shrinkage Definition - What is Shrinkage%3F
    Single-Step Income Statement - What is a Singe-Step Income S
    Trade Discount Definition - What is a Trade Discount
    Wholesaler Definition - What is a Wholesaler%3F
    Accounting Comic Break

    Part Two - Inventory Costs & Cost Flows

    Part Two Inventory Costs & Cost Flows

    Part 2 Inventory Tracking & Inventory Methods

    2 Inventory Tracking & Inventory Methods
    PDF - 10 600 Inventory Tracking Explained - Introduction-Specific Ide
    10 600 Inventory Tracking Explained - Introduction-Specific Ide
    PDF - 15 600 Inventory Methods Explained and compared FIFO LIFO Ave
    15 600 Inventory Methods Explained and compared FIFO LIFO Ave
    Accounting Comic Break

    Part 2 Inventory Cost, Principles, and Perpetual vs Periodic Inventory Systems

    3 Inventory Cost, Principles, and Perpetual vs Periodic Methods
    PDF - 17 Inventory Costs
    17 Inventory Costs
    PDF - 20 Consistency Concept
    20 Consistency Concept
    PDF - 30 Lower of Cost or Market
    30 Lower of Cost or Market
    PDF - 40 Perpetual & Periodic Inventory Systems
    40 Perpetual & Periodic Inventory Systems
    Multiple Choice 1 - Inventory Cost
    Accounting Comic Break

    Part 2 Periodic System First In First Out (FIFO)

    4 Periodic System First In First Out (FIFO)
    PDF - 42 First In First Out (FIFO) Periodic System
    42 First In First Out (FIFO) Periodic System
    Excel Download
    Worksheet FIFO Periodic System
    Multiple Choice 2 - Inventory Cost
    Accounting Comic Break

    Part 2 Periodic System Last In Last Out (LIFO)

    5 Periodic System Last In First Out (LIFO)
    PDF - 44 Last In First Out LIFO Periodic
    44 Last In First Out LIFO Periodic
    Excel Download
    Worksheet Last In First Out (LIFO) Periodic System
    Accounting Comic Break

    Part 2 Periodic Weighted Average Method

    6 Periodic Weighted Average Method
    PDF - 46 Weighted Average Periodic System
    46 Weighted Average Periodic System
    Excel Download
    Worksheet Weighted Average Periodic System
    Multiple Choice 3 - Inventory Cost
    Accounting Comic Break

    Part 2 Perpetual System Fist In First Out (FIFO)

    7 Perpetual System First In First Out (FIFO)
    PDF - 50 600 First In First Out FIFO Explained
    50 600 First In First Out FIFO Explained
    Excel Download
    Worksheet 600.10 Inventory Cost Problem First In First Out part 1 Ex.%2C how to
    Worksheet 600.20 Inventory Cost Problem First In First Out part 2 Ex.%2C how to
    Multiple Choice 4 - Inventory Cost
    Accounting Comic Break

    Part 2 Perpetual System Last In First Out (LIFO)

    8 Perpetual System Last In First Out LIFO
    PDF - 60 600 Last In First Out LIFO Inventory Method Explained
    60 600 Last In First Out LIFO Inventory Method Explained
    Excel Download
    Worksheet 600.50 Cost Problem Last In First Out LIFO part 1 Ex.%2C how to calc
    Worksheet 600.60 Cost Problem Last In First Out LIFO part 2 Ex.%2C how to calcul
    Multiple Choice 5 Inventory Cost
    Short Calculation 1
    Accounting Comic Break

    Part 2 Perpetual System Weighted Average Method

    9 Perpetual System Weighted Average Method
    PDF - 70 600 Average Inventory Method Explained
    70 600 Average Inventory Method Explained
    Excel Download
    Worksheet 600.30 Inventory Cost Problem Average method Part 1 Ex.%2C how to calc
    Worksheet - 600.40 Inventory Cost Problem Average method Part 2 Ex.%2C how to c
    Multiple Choice 6 Inventory Cost
    Short Calculation 2
    Accounting Comic Break

    Part 2 Definitions & Key Terms

    10 Definitions & Key Terms
    Average Cost Definition - What is Average Cost%3F
    Conservatism Constraint Definition - What is Conservatism Co
    Consignee Definition - What is Consignee%3F
    Consignor Definition - What is a Consignor%3F
    Consistency Concept Definition - What is Consistency Concept
    Days Sales in Inventory Definition - What is days sales in i
    First in First out Definition FIFO - What is First in First
    Gross Profit Definition - What is Gross Profit%3F (1)
    Interim Financial Statements Definition - What are Interim Financial Statements%
    Inventory Turnover Definition - What is Inventory Turnover%3F
    Last in First Out LIFO Definition - What is Last in First ou
    Lower of Cost or Market Definition - What is Lower of Cost o
    Net Realizable Value Definition - What is Net Realizable Val
    Retail Inventory Method Definition - What is Retail Inventory Method%3F
    Specific Identification Definition - What is Specific Identi
    Weighted Average Definition - What is Weighted Average Metho
    Accounting Comic Break

    Part Three Comprehensive Problem

    Part Three Comprehensive Problem

    Comprehensive Problem

    11 Comprehensive Problem
    Excel Download
    1 Accounting%2C Financial - Comp Problem Merchandising Co Journal Entries Part 1
    2 Accounting%2C Financial - Comp Problem Merchandising Co Journal Entries Part 2
    3.5 Accounting%2C Financial - Comp Problem Merchandising Co Journal Entries Part
    4 Accounting%2C Financial - Comp Problem Merchandising Co %282%29. Journal Entri
    5 Accounting%2C Financial - Comp Problem Merchandising Co. Journal Entries Part
    6 Comp Problem Merchandising Co. Adjusting Entries Part 6
    7 Accounting%2C Financial - Comp Problem Merchandising Co. Adjusting Entries Par
    8 Accounting%2C Financial - Comp Problem Merchandising Co. Financial Statements
    9 Accounting%2C Financial - Comp Problem Merchandising Co. Financial Statements
    10 Accounting%2C Financial - Comp Problem Merchandising Co. Financial Statements
    11 Accounting%2C Financial - Comp Problem Merchandising Co. Financial Statements
    12 Accounting%2C Financial - Comp Problem Merchandising Co. Closing Entries Part
    13 Accounting%2C Financial - Comp Problem Merchandising Co. Closing Entries Part
    Accounting Comic Break

    Screenshots

    Financial Accounting–Inventory & Merchandising Transactions - Screenshot_01Financial Accounting–Inventory & Merchandising Transactions - Screenshot_02Financial Accounting–Inventory & Merchandising Transactions - Screenshot_03Financial Accounting–Inventory & Merchandising Transactions - Screenshot_04

    Reviews

    Daniel
    September 1, 2020
    Best Tuition with vivid examples Very enlightening and I'm glad I signed up, am gonna purchase all of Bob Steele's lectures With no knowledge at all, you can start and learn through the course, I promise you'll never regret it. I've not seen better online lectures like this one
    S
    October 30, 2019
    Very clear explanation. Succinct, superb presentation skill, step by step professional teaching. It is an enjoyment to watch this course! Highly recommended!
    Bobbie
    May 3, 2018
    Genuine course packed full of information on inventory and merchandising transactions. Very well explained and demonstrated. Thank you.

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    Rating

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    Enrollment distribution

    Financial Accounting–Inventory & Merchandising Transactions - Distribution chart
    1608074
    udemy ID
    3/20/2018
    course created date
    4/1/2020
    course indexed date
    Lee Jia Cheng
    course submited by