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In this course, the accounting for inventory in merchandising companies is presented.  Both the purchase and sales sides of the transactions will be analyzed, along with sales tax and physical inventory practices.  Differences in accounting for both Free On Board (FOB) points will be explained along with dealing with payment discounts. 

The Income Statement is expanded to a Multi-Step Income Statement to accommodate the additional information needed to be presented by a merchandising company.  Additionally, contra-accounts are added to the list of accounting tools.

Course Series

This course is included in the following series:

11 CoursesBack to the Basics: Accounting Fundamentals

  1. Accounting Review: The Basics of Debits and Credits
  2. Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
  3. Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  4. The Accounting Equation and Financial Statements
  5. Bank Reconciliations, Cash, and Internal Controls
  6. Accounts Receivable Training: Bad Debts
  7. Equipment and Depreciation
  8. Inventory Costing
  9. Purchase and Sale of Inventory
  10. The Adjusting Process
  11. The Closing Process

Learning Objectives

  • Discover core concepts related to inventory for a merchandising business
  • Recognize how to perform transactions for the sales of inventory cycle
  • Recognize how to perform transactions for the purchase of inventory cycle
  • Recognize how to perform other transactions associated with inventory such as sales tax and physical inventory counts
Last updated/reviewed: September 03, 2017

21 Reviews (64 ratings)Reviews

Anonymous Author
Course was quite detailed and gave alot of sample problems to work through. However I did not like the fact that we do not get to see which answers were incorrect on the exam and why? It would be nice to know where we went wrong!
4
Anonymous Author
This was a well explained course and easy to follow along. I was a little disappointed in the visual aids, not very professional.
4
Member's Profile
The course was good teaching the basics and discussion many examples. The instructor was easy to follow and engaging.
5
Member's Profile
I really enjoyed course. I would like to be able to see the correct answer for exam questions wrong.
4
Member's Profile
Course was fairly comprehensive concerning the topic. The presentation method was pretty effective.
4
Member's Profile
Good coverage of material. Handouts were not as useful as they are in most other courses.
4
Anonymous Author
Showing buyer vs. seller perspective assisted in making this topic very clear.
Member's Profile
A good basic course. The instructor does a good job of illustrating entries.
4
Anonymous Author
The last question did not seem to be worded as well as it could have been.
5
Member's Profile
I like how the visuals were done - not just reading but more interactive.
5
Member's Profile
Nice refresher for beginners in accounting
5
Member's Profile
Very nice introductory review. Thanks!
3
Anonymous Author
Very basic course. No slides included.
3
Anonymous Author
Too much time spent on discounts.
5
Member's Profile
Clearly presented review.
5
Anonymous Author
Good refresher
5
Anonymous Author
Good overview.
4
Member's Profile
Veey Good
5
Member's Profile
Excellent
4
Member's Profile
Swell
4
Member's Profile
good

Prerequisites

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
Purchase and Sale of Inventory
  14:11Multi Step Income Statement
  4:21FOB and Payment Terms
  16:11Journal Entries and Buyers Point of View
  8:46Sellers Point of View
  11:28Example: Purchase and Sale of Inventory
CONCLUSION
  8:08Sales Tax and Inventory Shrinkage
Continuous Play
  1:14:32Core Financial Accounting: Purchase and Sale of Inventory
SUPPORTING MATERIALS
  PDFNotes Template: Purchase and Sale of Inventory
  PDFWorkbook: Purchase and Sale of Inventory
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM