Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b. Merchandise Inventory c. Sales Revenue d. All of the above

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 5, Problem 1QC

Which account does a merchandiser use that a service company does not use?

a. Cost of Goods Sold
b. Merchandise Inventory
c. Sales Revenue
d. All of the above

Expert Solution & Answer

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer to Problem 1QC

(d) All the above

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Conclusion

Therefore, the correct option is (d).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $3,000, and Clyde owns the remaining 40 shares with a basis of $12,000. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of these stock redemption transactions qualify for sale or exchange treatment. Getaway redeems 29 of Bonnie’s shares for $10,000. Getaway has $26,000 of E&P at year-end and Bonnie is unrelated to Clyde.

Novak supply company a newly formed corporation , incurred the following expenditures related to the land , to buildings, and to machinery and equipment. abstract company's fee for title search $1,170 architect's fee $7,133 cash paid for land and dilapidated building thereon $195,750 removal of old building $45,000 LESS: salvage $12,375 $32,625 Interest on short term loans during construction…

Year Cash Flow 0 -$ 27,000 1 11,000 2 3 14,000 10,000 What is the NPV for the project if the required return is 10 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. NPV $ 1,873.28 At a required return of 10 percent, should the firm accept this project? No Yes What is the NPV for the project if the required return is 26 percent?

Answer 2

Textbook Question

Chapter 5, Problem 1QC

Which account does a merchandiser use that a service company does not use?

a. Cost of Goods Sold
b. Merchandise Inventory
c. Sales Revenue
d. All of the above

Expert Solution & Answer

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer to Problem 1QC

(d) All the above

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Conclusion

Therefore, the correct option is (d).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 5, Problem 1QC

Which account does a merchandiser use that a service company does not use?

a. Cost of Goods Sold
b. Merchandise Inventory
c. Sales Revenue
d. All of the above

Expert Solution & Answer

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer to Problem 1QC

(d) All the above

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Conclusion

Therefore, the correct option is (d).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 5, Problem 1QC

Which account does a merchandiser use that a service company does not use?

a. Cost of Goods Sold
b. Merchandise Inventory
c. Sales Revenue
d. All of the above

Expert Solution & Answer

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer to Problem 1QC

(d) All the above

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Conclusion

Therefore, the correct option is (d).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer to Problem 1QC

(d) All the above

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Conclusion

Therefore, the correct option is (d).

Answer 8

Expert Solution & Answer

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer to Problem 1QC

(d) All the above

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Conclusion

Therefore, the correct option is (d).

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Merchandise Business: Merchandise business refers to the business of buying goods from the suppliers, and selling those to the customers with profit.

To Find: The correct account that is used in a merchandise company.

Answer 12

Answer to Problem 1QC

(d) All the above

Answer 13

Explanation of Solution

Explanation for correct answer:

Merchandise Company uses cost of goods sold account, sales revenue account, and merchandise inventory account to calculate its gross profit. However, Service Company uses service revenue account and operating expenses account to calculate its gross profit.

Explanation for incorrect answers:

Option (a) is incorrect because only cost of goods sold account is not use in a merchandise company.
Option (b) is incorrect because only merchandise inventory account is not use in a merchandise company.
Option (c) is incorrect because only sales revenue account is not use in a merchandise company.

Answer 14

Conclusion

Therefore, the correct option is (d).

Answer 15

Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - 5. Austin Sound sold inventory for $300,000, terms...Ch. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QC Ch. 5 - Prob. 10QC

Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b. Merchandise Inventory c. Sales Revenue d. All of the above

Concept explainers

Videos

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 5 Solutions