When preparing the worksheet for a merchandising business using the perpetual inventory system,which of the following statements is incorrect?
A)The merchandiser's worksheet carries the account Cost of Goods Sold.
B)The main new account is the Merchandise Inventory account.
C)The worksheet procedures are not similar to the worksheet procedures for a service company.
D)The Merchandise Inventory account must be adjusted based on a physical count due to inventory shrinkage.

Question

Quizplus · Accepted Answer

The worksheet procedures for a merchandising business using the perpetual inventory system are similar to those for a service company; however, the merchandiser's worksheet includes additional accounts such as Merchandise Inventory, Purchases, and Cost of Goods Sold. Therefore, statement C is incorrect.

When Preparing the Worksheet for a Merchandising Business Using the Perpetual