How does the Balance Sheet and the Income statement differ between Merchandising and Service company? Periodic vs Perpetual systems - how do they differ, which one is used in practice and how It is very important that you can record the transactions related to both, purchases and sales of inventory and all the "complications" that may occur along the way (paying on credit, discounts, returns and allowances, transportation costs etc.) - this is what we did in class, you have solved examples on slides, in the book and we had this on Assignment 2 so you can use that problem for practice What is the difference between return and allowance, what is the difference in recording these transactions for seller of the inventory? What about the buyer? Make sure you know what FOB shipping point and FOB destination point mean. Calculate Net sales - what are they net to? Calculate Gross profit What are the operating expenses and how are they classified? Calculate and interpret gross profit percentage, inventory turnover and days in inventory (use examples solved on slides as practice)