In a perpetual inventory system, the Merchandise Inventory account acts as a control account for the individual inventory accounts in the subsidiary ledger.
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Q1: For merchandising companies, operating expenses are expenses
Q2: Cost of goods sold is a contra
Q3: Cost of goods sold is subtracted from
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Q6: Freight costs for items shipped FOB destination
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Q11: Sales Returns and Allowances:
A) is a contra
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