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.