When preparing the worksheet for a merchandising business using the perpetual inventory system,which of the following is not a new merchandising account that is shown on the worksheet?
A)Accumulated Depreciation - Building
B)Sales Returns and Allowances
C)Cost of Goods Sold
D)Merchandise Inventory

Question

Quizplus · Accepted Answer

Accumulated Depreciation - Building is a contra asset account that is used to record the accumulation of depreciation on a building asset. It is not a merchandise account that is related to the sales or purchases of inventory, unlike the other options listed (Sales Returns and Allowances, Cost of Goods Sold, Merchandise Inventory).

When Preparing the Worksheet for a Merchandising Business Using the Perpetual