Merchandising Transactions and Inventory Valuation
What this domain tests
Merchandising questions test the three-split method (三分法), purchase and sales returns, trade discounts, transportation costs, and the inventory count. You must compute 売上原価 and make the closing entries that move beginning and ending inventory through 繰越商品 and 仕入.
Core rules
- Record merchandise purchases in 仕入 and sales in 売上. 繰越商品 holds inventory.
- 売上原価 = 期首商品棚卸高 + 当期仕入高 − 期末商品棚卸高.
- Purchase returns: 買掛金 / 仕入. Sales returns: 売上 / 売掛金.
- 仕入割引 is non-operating revenue: 買掛金 / 現金 and 仕入割引. 売上割引 is non-operating expense: 現金 and 売上割引 / 売掛金.
- Inventory cost-flow methods include 先入先出法, 移動平均法, 総平均法, and 個別法. Grade 3 problems usually specify the method.
Closing inventory entries
- Remove beginning inventory: 仕入 / 繰越商品.
- Record ending inventory: 繰越商品 / 仕入.
- 棚卸減耗損 and 商品評価損 reduce inventory and are included in cost of sales in Grade 3 problems.
Worked example
Beginning inventory ¥100,000; purchases ¥500,000; ending inventory ¥120,000. Cost of sales is 100,000 + 500,000 − 120,000 = ¥480,000. Closing entries: 仕入 100,000 / 繰越商品 100,000; then 繰越商品 120,000 / 仕入 120,000. After posting, 仕入 has a debit balance of ¥480,000, which is closed to 損益. The ending inventory stays on the balance sheet as an asset.
Traps
- Debiting 売上原価 directly in the journal; Grade 3 uses 仕入 and 繰越商品.
- Treating a sales return as an expense instead of a reduction of 売上.
- Forgetting that 仕入割引 is not a reduction of purchase cost.
- Valuing ending inventory at selling price without a lower-of-cost-or-market instruction.
- Missing the beginning-inventory entry, which double-counts cost.