Explain the difference between the revenue statements of a merchandiser and those of a manufacturer in detail.

Q: For each of the following accounts used by a retail business, determine its classification: asset,…

A: Contra assets are those whose accounts balance is credit. Generally, all asset accounts show debit…

Q: Which accounting technique gives the most relevant information (net cost or gross invoice price)

A: The most relevant information of accounting technique will be explained:

Q: How should a non vat seller treat input vat paid on the purchases from vat supplier of inventories…

A: The major purpose of adopting VAT is to reduce the effects of multiple taxes and the cascading…

Q: What is the formula used to determine the amount of merchandise inventory to be purchased?

A: To calculate amount of merchandise inventory to be purchased, we need opening inventory amount,…

Q: Determine which of the following statements about merchandise is correct.

A: Merchandise inventory: Merchandise inventory is the inventory purchased by company for the purpose…

Q: Determine the total selling and administrative expenses

A: Formula: Total selling and administrative expense = Beginning selling and administrative expense +…

Q: The Partial Billings account is a revenue account. contra account to Sales Revenue. contra account…

A: Partial billing means where customer request to send the bill on partial work which has been done.…

Q: When does a company typically recognize revenue for a bill-and-hold sale?

A: Bill and hold agreements represent a sales arrangement in which the buyer pays for the item or items…

Q: What is a merchandiser, and what is the name of the merchandise that it sells?

A: Merchandiser: A merchandiser is a business that sells goods, or merchandise, to its customers.

Q: when a company holds the merchandise for another company to sell, that merchandise is said to be…

A: Any good which is produced by the business to be kept to sale once it is a finished good. Such sale…

Q: For each of the following formulas, select the correct name of the formula: Sales Revenue - Sales…

A: The given formulas are matched below:

Q: When should revenue from the sale of merchandise normally be recognized? (Assume the company reports…

A: The revenue should be recognized in the following conditions. 1.When the amount realized or received…

Q: Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for…

A: Franchise arrangement and performance obligation:   In a franchise transaction, the franchisor has…

Q: It is used to show who is responsible for paying for shipping and when the title of the goods passes…

A: Payment term used to show who is responsible for paying for shipping and when the title of the goods…

Q: In a cost-divided income statement, changes in purchased goods (merchandise) must be reported under…

A: Following is the answer to the given question

Q: What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Customer…

A:

Q: Why do you add transportation in and do not deduct delivery expense when determining the cost of…

A: For a buyer, the cost of merchandise purchased is considered as a net cost incurred to buy the…

Q: While reporting revenue, how a company should consider barter arrangement and discount?

A: Revenue Reporting: The process of accounting for revenue for a product you offer to a client is…

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: If the seller expects a sales return, then it should debit sales return and credit refund liability…

Q: Explain how a retailing firm would determine the cost of goods sold during an accounting period.

A: Retailing firms are those firms that are run for the prime purpose of earning profits. The cost of…

Q: For a company like Best Buy, what does the balance of Cost of Goods Sold in the income statement…

A:

Q: Which accounting method (net cost or gross invoice price) provides the most useful information?

A: The net cost of any product is the amount of the invoice plus any taxes and extra fees that are…

Q: Which account does a merchandiser use that a service company does not use? Cost of Goods Sold…

A:

Q: Describe the accounting treatment for merchandise returns.

A: Purchase returns: Purchase returns are the goods returned by the buyer out of the goods purchased.…

Q: (True or False?) The income statement for a retailer shows both gross profit and profit.

A: Gross profit = Sales - Cost of goods sold  Net Profit =  Total Revenue - Total Expenses

Q: Goods or products a company owns and expects to sell to its customers A) Sales B Merchandise…

A: Answer -  Merchandise Inventory -  Merchandise inventory means the value of goods in stock, it can…

Q: Explain the difference between the income statements of a merchandiser & a manufacturer

A: 1. Income Statement - An income statement is a statement that shows the revenue earned and expenses…

Q: What are the differences between accounting for service companies and accounting for merchandise…

A: The Answer :

Q: What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts…

A: Purchase of goods on credit means inventory has been purchased but payment has not been made yet.…

Q: Besides inventories, what other assets often appear on manufacturers’ balance sheets but not on…

A: Nature of assets of both the companies differs with each other as Manufacturing Companies deals with…

Q: What is the difference in the operating cycle of a service provider and a merchandiser?

A: Operating cycle is defined as the amount of time the company requires to use its cash in order to…

Q: When a company uses LIFO for external reporting purposes FIFO for internal reporting pusposes, an…

A: LIFO reserve: LIFO reserve refers to the difference in the value of inventory, between the goods…

Q: Which of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC.…

A: This account book transaction would be linked to certain associated accounts of a different sort.…

Q: Merchandise inventory is O Reported on the balance sheet under plant and equipment O Products a…

A: Income statement and balance sheet are the financial statements of a company, prepared at the end of…

Q: Describe the operating cycle of a merchandiser.

A:

Q: In comparing the accounts of a merchandising company with those of a service company, what…

A: Perpetual inventory system:- It is the system in which sales and purchase of inventory is a…

Q: Sales taxes collected by a retailer are reported as revenues. current liabilities. expenses.…

A: Introduction: A sales tax is a consumption tax imposed by the government on the selling of goods and…

Q: When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon…

A: A technique of recognition of revenue under which the revenue is recognized at the point of sale but…

Q: How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec.…

A: Cost of goods sold is the cost of goods that are being sold in that particular period. It is…

Q: The revenue account for a merchandising business is typically called ___________. Group of answer…

A: Solution: Merchandise business generally involves purchase and sales of merchandise. It is a type of…

Q: Match each definition with the term that best describes it. An income measure that includes gains…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Under what circumstances do generally accepted accounting principles permit the use of an inventory…

A: Solution-   688-8-3DQ SA -3946 SR- 2606     Generally accepted accounting principles allow the…

Q: Indicate whether the following financial statement items apply to a manufacturer, a merchandiser, or…

A: The manufacturing business involves the production of goods. The merchandise business includes the…