Assignment Discussion: Merchandising: This assessment addresses the following course objective(s):
Record various business transactions in accordance with generally accepted accounting principles. Instructions: Answer one of the following questions:
Problem 1: Explain how the operating cycle for a merchandiser is different from a manufacturer. Explain the difference between perpetual and periodic inventory systems.
Problem 2: What types of businesses would use each system and what are the advantages and disadvantage of each. Companies sometimes offer their customers a discount on their purchase if they pay early.
Problem 3: What is the benefit for the company to take a reduced amount on these purchases and from the customer's point of view is it beneficial for them to take the discount.
Problem 4: What factors does the customer have to consider when deciding to take the discount?
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