MANAGEMENT

Detailed explanation-1: -When companies sell merchandise inventory, the transaction requires two journal entries: the first entry records the revenue from the sale at the selling price and the second entry decreases the inventory account and records the expense of the sale at cost.

Detailed explanation-2: -each purchase and sale of merchandise is recorded in an inventory account.

Detailed explanation-3: -Merchandising companies purchase goods that are ready for sale and then sell them to customers. Merchandising companies include auto dealerships, clothing stores, and supermarkets, all of which earn revenue by selling goods to customers.

Detailed explanation-4: -Merchandising Business Examples Some of the examples are clothing stores, grocery stores, and bookstores. These businesses function by taking lots of products from either wholesalers or manufacturers at a discount and then reselling the products to make profits.