Q1. Explain the inventory system followed by merchandiser.
Q2.Assume that Guardian Company uses a periodic inventory system and has these account balances: Purchases $600,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-in $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000.
3.Deloy Company gathered the following condensed data for the year ended December 31, 2016
Cost of goods sold $ 690,000
Net sales 1,250,000
Administrative expenses 234,000
Interest expense 58,000
Dividend revenue 38,000
Loss from employee strike 233,000
Selling expenses 45,000