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When a store purchases merchandise why are individual departments not allowed to directly deal with suppliers?
Individual departments are typically not allowed to deal directly with suppliers to ensure consistency in purchasing practices, pricing, and supplier relationships across the organization. This centralized approach helps maintain better control over inventory, reduces the risk of miscommunication, and enables bulk purchasing agreements that can lower costs. Additionally, it allows the procurement team to negotiate favorable terms and manage supplier performance more effectively.
What else can I help you with?
What does Purchases journal?
Purchase journal is used to record "Credit Purchases" for resale purpose like supplies from suppliers and hence no cash purchases are recorded as cash purchases are recorded in cash payment journal.
A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise True or False?
fales
What is the Journal entry on return of merchandise previously purchased on account?
The following journal entry is required to be passed on return of merchandise, previously purchased on account:Creditors A/c Dr.To Purchase Return A/c(Being goods returned to suppliers)For any more query, you can follow me at caravi1234.blogspot.in / FacebookCA. Ravi Chugh(FCA, Visiting faculty ICAI & Top Institutes of CA studies, IPCC-Accountancy)
What is merchandise inventory?
Merchandise inventory is the quantity of goods that are not being sold and will remain on the companyÕs record or with intent in re-selling the goods to the third party. Goods that are not sold can also be possibly returned to the suppliers.
How do purchases returns and allowances and purchases discounts affect net purchases?
Purchases returns and allowances reduce the total purchases made by subtracting the value of returned goods or allowances granted for damaged items. Similarly, purchase discounts decrease the overall cost of purchases when suppliers offer price reductions for early payment or bulk buying. Together, these factors directly lower the gross purchases figure, resulting in a lower net purchases amount, which is calculated as gross purchases minus returns, allowances, and discounts. This ultimately affects the cost of goods sold and the overall profitability of a business.
Why are individual departments not allowed to directly deal with suppliers?
It would not be well controlled. Having individual departments place orders through a purchasing department helps control the amounts purchased and the resulting liabilities.
What does Purchases journal?
Purchase journal is used to record "Credit Purchases" for resale purpose like supplies from suppliers and hence no cash purchases are recorded as cash purchases are recorded in cash payment journal.
Why suppliers need accounting information?
to make sure firms able to pay for its purchases
Where can one find Cardiology III merchandise?
Cardiology III doesn't have merchandise but is instead a model of stethoscopes from the company Littmann. You can find that product from medical suppliers or on eBay or Amazon.
Who does RaceTrac purchase their gas from?
RaceTrac purchases their gas directly from fuel suppliers and distributors. They work with various suppliers to ensure a consistent supply of fuel for their gas stations. The specific suppliers may vary by location and market.
A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise True or False?
fales
What is merchandise inventory?
Merchandise inventory is the quantity of goods that are not being sold and will remain on the companyÕs record or with intent in re-selling the goods to the third party. Goods that are not sold can also be possibly returned to the suppliers.
What is the Journal entry on return of merchandise previously purchased on account?
The following journal entry is required to be passed on return of merchandise, previously purchased on account:Creditors A/c Dr.To Purchase Return A/c(Being goods returned to suppliers)For any more query, you can follow me at caravi1234.blogspot.in / FacebookCA. Ravi Chugh(FCA, Visiting faculty ICAI & Top Institutes of CA studies, IPCC-Accountancy)
How do you find days payable outstanding?
Indicates how the firm handles obligations of its suppliers. · Formula Ending Accounts Payable Purchases / 365
Where does best buy get their merchandise?
Best Buy sources its merchandise from a variety of suppliers, including major technology manufacturers like Apple, Samsung, and Microsoft, as well as smaller and niche brands. The company purchases products directly from these manufacturers or through authorized distributors. Additionally, Best Buy engages in partnerships with vendors to offer exclusive products and promotions, ensuring a diverse selection for consumers. Their extensive supply chain helps them maintain competitive pricing and a wide range of electronics and appliances.
How do purchases returns and allowances and purchases discounts affect net purchases?
Purchases returns and allowances reduce the total purchases made by subtracting the value of returned goods or allowances granted for damaged items. Similarly, purchase discounts decrease the overall cost of purchases when suppliers offer price reductions for early payment or bulk buying. Together, these factors directly lower the gross purchases figure, resulting in a lower net purchases amount, which is calculated as gross purchases minus returns, allowances, and discounts. This ultimately affects the cost of goods sold and the overall profitability of a business.
Where does the dollar tree get there merchandise?
Dollar Tree sources its merchandise from a variety of suppliers both in the United States and internationally. They work with manufacturers, distributors, and wholesalers to offer a wide range of products at affordable prices for their customers.
