In your own words.

1. Explain the recording of purchases under a perpetual inventory system

2. Explain the recording of sales revenues under a perpetual inventory system

3. Explain the steps in the accounting cycle for a merchandising company

4. Distinguish between a multi-step and a single-step income statement

5. Explain the computation and importance of gross profit

6. Explain the recording of purchases and sales of inventory under a periodic inventory system