The major difference for a merchandising firm in the income statement columns of the worksheet is the presence of Cost of Goods Sold, Freight-Out (or Delivery Expense), and the accounts related to net sales.

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Merchandising firms have different expenses compared to service firms, including Cost of Goods Sold and freight/delivery expenses, which are reflected in the income statement columns of the worksheet. Additionally, the accounts related to net sales will also differ for a merchandising firm compared to a service firm.

The Major Difference for a Merchandising Firm in the Income