Response to the following questions:
1. Describe a merchandiser's cost of goods sold.
2. What is gross profit for a merchandising company?
3. Explain why use of the perpetual inventory system has dramatically increased.
4. How long are the credit and discount periods when credit terms are 2y10, ny60?
5. Identify which items are subtracted from the list amount and not recorded when computing purchase price: (a) freight-in; (b) trade discount; (c) purchase discount; (d ) purchase return.