Discover key differences in income statements for merchandising and service companies, including inventory, cost of goods sold (COGS), and revenue variations.

When a company sells merchandise, such as clothing, part of doing business includes dealing with returns. A customer might request a refund for various reasons, such as ordering the wrong product or ...

In business accounting, merchandising inventory refers to merchandise procured by a merchant for resell. Merchandising companies sell products such as clothing, auto parts and other tangible products.