Posted by Anon on .
What items appear on the merchandising company statements that don’t appear on the service company statements? Why is there a difference?
Financial Accounting -
Well, it's obvious. The answer is in the question. Merchandise Inventory. Whenever you sell merchandise, you also must have a journal entry for Cost of goods sold as well.
Merchandising company is when your actually selling something.
Service company statements is when your providing services for your client.