Which of the following accounts will not be found in the Cost of Merchandise Sold section of the income statement for a company using the periodic inventory method?

Question

Quizplus · Accepted Answer

Cost of Merchandise Sold represents the cost of the goods that were sold during the accounting period. Therefore, Selling Expenses, which represent expenses incurred to promote and sell goods, are not included in Cost of Merchandise Sold. Purchases, Freight-In, and Merchandise Inventory are all accounts that are included in Cost of Merchandise Sold.

Which of the Following Accounts Will Not Be Found in the Cost