Which of the following accounts would most likely appear on the income statement of a merchandise company but NOT on the income statement of a service company?

Question

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Cost of goods sold is an expense that is unique to merchandise companies because they purchase and sell physical goods, whereas service companies primarily provide intangible services and therefore do not have inventory or cost of goods sold. Selling expenses, administrative expenses, and income tax expense may be present on both service and merchandise company income statements.

Which of the Following Accounts Would Most Likely Appear on the Income