Distinguish between merchandising businesses from a service business.

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Answer 1

Question

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Students have asked these similar questions

Ming Chen started a business and had the following transactions in June. a. Owner invested $60,000 cash in the company along with $15,000 of equipment. b. The company paid $2,000 cash for rent of office space for the month. c. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected $1,600 cash. e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days. f. The company purchased additional equipment for $5,000 cash. g. The company paid an assistant $2,400 cash as wages for the month. h. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $18,000 cash to settle the liability created in transaction c. j. The owner withdrew $1,500 cash from the company for personal use.

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Answer 2

Question

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Answer 3

Question

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Answer 4

Question

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Answer 5

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

Answer 6

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

Answer 7

Chapter 6, Problem 1DQ

To determine

Distinguish between merchandising businesses from a service business.

Answer 8

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising business and service business.

Details	Merchandising Company	Service Company
Meaning	A merchandising company generates income by selling goods to its customers.	A service company produces income by providing services to their customers.
Type of Revenues	Sales Revenue Example: Selling price of merchandise inventory.	Service Revenue Example: Fees received, Rents received, Interest income.
Type of Expenses	Cost of goods sold and operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.	Only operating expenses Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 6 - Prob. 1DQ Ch. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - What is the meaning of (a) 1/15, n/60; (b) n/30;...Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Name four accounts that would normally appear in...Ch. 6 - Prob. 9DQ Ch. 6 - Assume that Audio Outfitter Inc. in Discussion...

Distinguish between merchandising businesses from a service business.

Distinguish between merchandising businesses from a service business.

Explanation of Solution

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