1. Identify the management issues related to merchandising businesses.



2. Define and distinguish the terms of sale for merchandising transactions.



3. Prepare an income statement and record merchandising transactions under the perpetual inventory system.



4. Prepare an income statement and record merchandising transactions under the periodic inventory system.



5. Define internal control and its basic components, give examples of control activities, and describe the limitations of internal control.



6. Apply internal control activities to common merchandising transactions.



Supplemental Objective

7. Apply sales and purchases discounts to merchandising transactions.




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