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!

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.