List the major types of limited-service wholesalers and explain how each type functions
What will be an ideal response?
Cash and carry wholesalers sell a limited line of fast-moving goods to small retailers for cash. Truck wholesalers sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels.
Drop shippers serve bulk industries such as coal, lumber, and heavy equipment. They assume title and risk from the time an order is accepted to its delivery.
Rack jobbers serve grocery retailers in nonfood items. Delivery people set up displays, price goods, and keep inventory records; they retain title to goods and bill retailers only for goods sold to the end of the year.
Producers' cooperatives assemble farm produce to sell in local markets.
Mail-order wholesalers send catalogs to retail, industrial, and institutional customers; orders are filled and sent by mail, rail, plane, or truck.
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A business is separate from its owners; this concept is known as:
a. Going concern b. Business entity c. Accounting equation d. Information usefulness
Internet Corporation is considering the acquisition of Homepage Corporation and has obtained the following audited condensed balance sheet:
Homepage Corporation Balance Sheet December 31, 2016 Assets Liabilities and Equity Current assets $ 40,000 Current Liabilities $ 60,000 Land 20,000 Capital Stock (50,000 Buildings (net) 80,000 shares, $1 par value) 50,000 Equipment (net) 60,000 Other Paid-in Capital 20,000 Retained Earnings 70,000 $200,000 $200,000 Internet also acquired the following fair values for Homepage's assets and liabilities: Current assets $ 55,000 Land 60,000 Buildings (net) 90,000 Equipment (net) 75,000 Current Liabilities (60,000) $220,000 Internet and Homepage agree on a price of $280,000 for Homepage's net assets. Prepare the necessary journal entry to record the purchase given the following scenarios: a. Internet pays cash for Homepage Corporation and incurs $5,000 of acquisition costs. b. Internet issues its $5 par value stock as consideration. The fair value of the stock at the acquisition date is $50 per share. Additionally, Internet incurs $5,000 of security issuance costs.