When merchandise is sold,the cost of the merchandise is removed from inventory and reported on a multistep the income statement as

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Quizplus · Accepted Answer

The cost of the merchandise sold is called the cost of goods sold (COGS) and is reported separately from other expenses on the income statement. It is calculated by subtracting the ending inventory from the beginning inventory and adding the net purchases during the period.

When Merchandise Is Sold,the Cost of the Merchandise Is Removed