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Closing entries for a merchandising business are not similar to those for a service business.
Merchandising Business
A type of business that purchases goods and resells them to consumers without changing their form, primarily making profit through the retail or wholesale of products.
Service Business
A business that provides intangible products or services to customers rather than physical goods.
Closing Entries
The entries that transfer the balances of the revenue, expense, and drawing accounts to the owner’s capital account.
- Acquire knowledge about the essential variances in financial documentation between service and merchandising businesses.
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Learning Objectives
- Acquire knowledge about the essential variances in financial documentation between service and merchandising businesses.
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