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Retail Research Activity

Retail Research Activity

Imagine if you had a local retail business-a grocery, clothing, book, music, or appliance store-and answer the following questions:

? What is the physical flow of merchandise into the store, and what documents are used in connection with this flow?
? What documents are prepared when merchandise is sold?
? Does the store keep perpetual inventory records? If so, does it keep the records in units only, or does it keep track of cost as well? If not, what system does the store use?
? How often does the company take a physical inventory?
? How are financial statements generated for the store?
? What method does the company use to cost its inventory for financial statements?

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Retail Research Activity

Imagine if you had a local retail business-a grocery, clothing, book, music, or appliance store-and answer the following questions:

? What is the physical flow of merchandise into the store, and what documents are used in connection with this flow?

The physical flow of merchandise into the store is the physical movement of goods from the suppliers. There will be the quotation, purchase order, and invoice used in connection with this flow whereby the store will request for quotation from the suppliers. Then, if the price is accepted, the store will issue purchase order for the products. Finally, when the products are delivered, the suppliers will send the invoice to the store.

? What documents are prepared when merchandise is sold?

The document to be prepared when the merchandise is sold is the tax invoice, which will record the price and quantity sold. Then, the store has to journalize the entries for ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment of more than 600 words of text.

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