CLO 1.1 (K1, K2) (5 Marks) Describe accounting for merchandising operations and uses of specialized Journals Questions, page 256 1. a) "The steps in the accounting cycle for a merchandising company differ from the steps in the Accounting cycle for a service company." Do you agree or disagree? (b) Is the measurement of net income in a merchandising Company conceptually the same as in a Service Company? Explain. 2. How do the components of revenues and expenses differ between a merchandising company and a service company? 3. Markoff Co. has sales revenue of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit? CLO 3.1 (K1, K2) (5 Marks) Evaluate and record transactions for inventory and receivables. 1. 1. "The key to successful business operations is effective inventory management. Do you agree? Explain. 2. An item must possess two characteristics to be classified as inventory. What are these two characteristics? 3. (a) Brandt Company ships merchandise to England Corporation on December 30. The merchandise reaches the buyer on January 5. Indicate the terms of sale that will result in the goods being included in (1) Brandt's December 31 inventory and (2) England's December 31 inventory. (b) Under what circumstances should Brandt Company include consigned goods in its inventory