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

Question

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The Cost of Goods Sold section of the income statement includes the cost of inventory sold during the period. Purchases and Freight In are both included in the Cost of Goods Sold calculation because they represent the cost of acquiring inventory for sale. Inventory, on the other hand, is an asset account that represents the cost of inventory purchased but not yet sold. Selling expenses do not affect the Cost of Goods Sold calculation and are typically shown separately on the income statement.

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