Introduction

Continuing the discussion for the accounting of a merchandising company, the previous two chapters have focused on acquiring the inventory on account (Chapter 6), and the cash payments procedures (Chapter 7). Using QuickBooks Pro, the selling price of the Inventory has also been established and set-up of sales tax rate where applicable on Chapter 6. The seller transfers title of the inventory to the buyer in exchange for cash or a promise to pay at a future date. In as much as most retail companies prefer cash sales, selling on account or on credit will help increase the volume of sales.