Okay, if you’ve read about trading marchant account companies before, surely you still remember right? In essence, a trading company is a company that buys goods, and then sells them again without adding value to the goods. But remember, without adding value, yes, not price. The value referred to here is the use value or the selling value of the item. But the price is still going up, the name is also selling, The earning is huge, almost 3600$ per month.
Examples of Trading Activities
For example, if we go back to the story at the beginning, the watch that you bought and resold is sold as a whole, without adding anything or being processed again. It’s a different story if you buy the watch, but before you sell it, you paint the watch strap first, for example. Well, that means the price of the clock has gone up, because there is a cost for your painting business and the cost of painting equipment. That’s what is called the value of the goods, okay? So if at a trading company, the goods you sell have the same value, only the price you increase. It’s really simple, but it’s really basic. So, the account for the selling merchant services is a document used to record in a company. Well, this account has many kinds, you know.
In this purchase account, all items purchased by a trading company from a manufacturer are listed here first. But even though the name is a purchase account, it doesn’t mean that all purchases are recorded here, because what are recorded are only purchases of goods.
Well, if it is on a sales account, it means that all items sold, whether to consumers or other intermediaries, are recorded here. It’s the same as the purchase account, which is recorded here only sales of goods.
As the name implies, the inventory account will record the amount of merchandise of a company. The number of items recorded is the amount that is in a certain period.
Cost of Goods Sold Account
The Cost of Goods Sold account is also known as the COGS account. If in this HPP account, what is recorded is the cost of goods which is used as a standard by the company to determine the price of goods to be sold. The market price also has an effect on the cost of goods, so note it here too. So, here will be the original price of the item before you increase the price and you sell it. So if at any time the market price changes, you can still see on the notes, previously what the original price was.
Cash Discount Account
In the cash discount account, what is recorded is when consumers get a discount or discount from the seller of the goods.
Purchase Discounts Account
For a purchase discount, it’s still similar to a cash discount. The difference is, in this case, the company gets a discount from the producer or the original owner of the goods. So, if you give a discount to a buyer, that goes to the cash discount account. But, if you get a discount from the seller, it means entering into a discount purchase account.