Create notes from the following outline: Chapter 5: Accounting for Merchandising Operations 1. Merchandising Activities i. Merchandise ii. Merchandiser iii. Wholesaler iv. retailer b. Reporting income for a Merchandiser i. Cost of goods sold ii. Calculation for net income for a service company iii. Calculation of net income for merchandiser iv. Gross profit/gross margin c. Reporting inventory for a Merchandiser i. Merchandise inventory d. Operating Cycle for a Merchandiser e. Inventory Systems i. Perpetual inventory system ii. Periodic inventory system iii. Merchandisers' cost flow for a single time period 2. Merchandise Purchases a. Purchases without Cash discounts b. Purchases with Cash discounts i. Credit terms 1. Credit period 2. Cash discount 3. Purchases discount 4. Sales discount 5. Discount period ii. Invoice iii. Gross method c. Purchases on Credit d. Payment within the Discount Period e. Payment after the Discount period f. Purchases on Credit g. Payment within the Discount Period h. Payment after Discount Period i. Purchases with Returns and Allowances j. Purchases Allowances k. Purchases Returns l. Purchases and Transportation Costs i. FOB ii. Ownership Transfer and Transportation Costs m. Itemized Cost of Purchase 3. Merchandise Sales i. Perpetual accounting system requirements for each sales transaction for a merchandiser b. Sales without Cash discounts i. Revenue Side: Inflow of Assets ii. Cost Side: Outflow of Assets c. Sales with Cash Discounts 1. Gross meth