Merchandise is a short-term asset of the company and as such has a great influence on the financial position and performance of the companies engaged in wholesale and retail trade. Special attention is paid to acquisition and recording of goods, the principles of recognition and valuation of stocks of trade goods. In the wholesale trade, the procedure for purchasing merchandise, calculation of dependent costs, wholesale price calculations, the procedure for selling merchandise, and warehouse debting are presented. In the retail store, the purchase of merchandise, the calculation of the retail price, the indebtedness of the store, the sales and discharge of the store´s debt will be clarified. An example of the purchase and receipt of merchandise in a wholesale and retail store will be presented through the bookkeeping documentation of the small trading company Pamigo d.o.o. whose core activity is wholesale trade in textiles.