Accounting for Merchandising Operations : The illustrations in earlier chapters were all based on service businesses like law firms and architects. Service businesses are a large component of an advanced economy. However, a lot of money is also spent in stores or on the internet. Such businesses are generally referred to as “merchants” and their goal is to purchase inventory and resell it at a higher price to customers. Chair Depot This chapter focuses on the merchandising business. Measuring income involves unique considerations.