SHIPPING BUSINESS. 



671 



. At the end of the year we proceed with the closing of our books 

 in the Shipping Business the same as in a general merchandise business, 

 lien the inventory is taken, the goods we have belonging to 

 us consist of not only those which we have in our store, but also those 

 which we have Charged to the different parties in our Shipping Ledger, 

 and which have not yet been reported sold ; therefore, after we have 

 found the value of the goods we have in the store, we must go through 

 our Shipping Ledger, and add to the inventory the value of the goods 

 th'-re found still unsold ; when we have done this our inventory is com- 

 plete, and we are prepared to close the Merchandise, which is done in the 

 manner described in 71. 



31.1. Another Method. There is another method of treating ship- 

 ments, which is very little in use ; the reason for its not being in iibe will 

 )>e readily understood after having read the following description of the 



hod : Charge the person to whom we ship the goods a certain amount, 

 which we think will be about what we will realize for the sale of the 

 goods ; then, when this person renders to us an Account-Sales of the con- 



inent, debit or credit his account for the difference between the amount 

 we charged him when we shipped the goods and the amount of the net 



reeds as shown in the Account-Sales. If the net proceeds be less than 

 the amount we had charged to him, debit Merchandise and credit his 

 count for the difference ; if more, debit his account and credit Merchandise 

 for the difference. When this method is adopted, the person to whom 



-hip the goods is charged at the time the goods are shipped, the same 

 as though we had sold him the goods " out and out ; " thus an actual sale 



ecorded in the books when, in fact, it is only an anticipated sale 

 li'-nce, a false statement. According to this method, when a shipping 

 merchant is financially embarra^-d. and wants, for the satisfaction of his 



iitors, to make a "big showing" on his books, if so disposal h.- may 

 .hen shipped, at exorbitant pi-ices, and by so doinij 



w (on consignments not yet reported sold) large amounts owing to him 



to whuiu lie has sold (?) goods. Tin-re are, of OOUI86, shipping 



A-ho are not financially embarrassed, who ha\ ire that 



>hould ivprr^-nt them worth more than they really an-, and 



who do not. char.:*' the ^n<d.- at. exorbitant |>ri- the ac- 



, :its with bo whom they ship according to this method. Hut 



liable mind it will at once, he seen that an untrue state! 

 in their ]. .!<, ; f..r tin- books show, in these accounts, a part of 

 >urces of the firm to be jwraofioJ '// nts o\ hich 



should in i. .\\ing of 7FK-' '*w*. 



