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

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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).

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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).

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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).

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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).

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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

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Answer to Problem 1QC

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