Question

Merchandise inventory includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. costs to purchase

b. costs to sell

c. shipping costs

d. costs to prepare for sale

e. cost of goods sold

Answer 1

Merchandise Inventory account includes the cost of goods purchased, shipping and handling costs, transit insurance, and storage costs

Explanation:

Merchandise inventory is the finished goods held for resale to customers.

Merchandise Inventory includes all goods owned by a company and held for sale.

A Merchandise Company:

• Earns its  net income by buying and selling merchandise
• It can also  buy products from manufacturers and sell it to retailers
• It can also buy products from manufacturers and sell them to customers
• can be a wholesaler or a retailer

Merchandise Inventory is referred to as  current asset

Merchandise Inventory account includes the cost of goods purchased, shipping and handling costs, transit insurance, and storage costs