The following pertains to periodic inventory: On a merchandising income statement,which would NOT be found under the heading of Cost of goods sold?
A) Supplies
B) Freight-in
C) Purchases returns and allowances
D) Purchases

Question

Quizplus · Accepted Answer

Supplies would not be included under the heading of Cost of goods sold on a merchandising income statement as they are not items intended for sale. The other options (B, C, D) are all direct costs associated with the purchase of goods for sale and would be included in the Cost of goods sold section.

The Following Pertains to Periodic Inventory: on a Merchandising Income