Trading, Wholesale & Distribution Chart of Accounts (COA) Mastery

What Will You Learn?

• Design and evaluate a GAAP-compliant COA for trading and distribution businesses
• Correctly classify inventory, COGS, and operating expenses
• Capitalize inventory acquisition costs, including freight-in and duties
• Recognize COGS only when inventory is sold, preserving margin accuracy
• Properly account for purchase returns, allowances, and sales returns
• Distinguish freight-in (inventory cost) from freight-out (selling expense)
• Apply accrual accounting and cutoff discipline to inventory and expenses
• Identify and avoid common audit and lender findings caused by misclassification