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 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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Students have asked these similar questions

Sp25 ACCT X CengageNOWv2 | Online teaching X exhibit 6.4.jpg 71x399) x + bw.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 < 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illust first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER un Check My Work 3 more Check My Work uses remaining Q Search hp

PLEASE HELP! NOTICE. THERE ARE FIVE CELLS ON THE LEFT SIDE TO FILL. THE DROPDOWN SHOWS THE OPTIONS FOR THESE CELLS.

Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

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 - Prob. 5QC 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. 10AQC

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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