LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business: b) In your own words, define Cost of Goods Sold? c) In your own words, define Gross Profit and how is it calculated? a) What is the difference between the period and perpetual inventory systems? LO2. How are purchases of merchandise inventory recorded in a perpetual inventory system a) Using the perpetual system, Journalize for: a) the purchase of merchandise inventory of $1,000 on account with the terms of 2/10 or n/30; b) the payment of the merchandise inventory within the discount period. Date Accounts and Explanation Debit Credit b) Using the perpetual system, Journalize for: a) the purchase of merchandise inventory of $1,000, with related freight charge of $100, on account with the terms of 2/10 or n 30. Terms of shipment are FOB shipping point and the seller prepays the freight charge; b) the payment of the merchandise inventory within the discount period. Date Accounts and Explanation Debit Credit A LO3. How are sales of merchandise inventory recorded in a perpetual inventory system a) Using the perpetual system, Journalize for: a) the sale of merchandise inventory of $1,000 on account with the terms of 2/10 or n/30. Cost of goods sold is $550; b) the customer makes payment within the discount period. Date Accounts and Explanation Debit Credit LO6. How do we use the gross profit percentage to evaluate business performance a) What is the formula for gross profit percentage? b) If net sales are $100,000 and gross profit is $25,000, what is the gross profit percentage