The Concept of Merchandising Businesses

Discuss merchandising businesses in your area. What are its inventory policies and accounting system?

What merchandise inventory does the business sell? From whom does the business buy its inventory? Is the relationship with the supplier new or longstanding? What are the FOB terms on inventory purchases? Who pays the freight: the buyer or the seller? Is freight a significant amount? What percentage of the total inventory cost is the freight? What are the credit terms on inventory purchases: 2/10, n/30, or other? Does the business pay early to get purchase discounts? If so, why? If not, why not?