A wholesaler sells to retailers, and a  retailer sells to the final users. In addition to using the general ledger, a business keeps a subsidiary ledger of individual customer accounts. Merchandising businesses receive cash from cash sales, payments on account, bankcard sales, and occasionally from other types of transactions.

• Explain the difference between a service business and a merchandising business.

• Explain the difference between a retailer and a wholesaler.

• Analyze transactions relating to the sale of merchandise.

• Record sales and cash receipt transactions in a general journal.