E5-1-Mr. McKe and merchandisers. zie has prepared the following list of statements about service com 1. Measuring net income for a merchandiser is conceptually the same as for a service company 2. For a merchandiser, sales less operating expenses is called gross profit. 3. For 4. Sales salaries and wages is an example of an operating expense 5. The operating cycle of a merchandiser is the same as that of a service company a merchandiser, the primary source of revenues is the sale of inventory. 6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained. 7. In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period. 8. A periodic inventory system provides better control over inventories than a perpetual system. Instructions Identify each statement as true or false. If false, indicate how to correct the statement