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The operating cycle of a merchandiser with credit sales includes the following five activities. With merchandise acquisition as the starting point, arrange the events in the correct order.
a. Prepare merchandise for sale
b. Collect cash from customers on account
c. Make credit sales to customers
d. Purchase merchandise
e. Monitor and service accounts receivable

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Answer:

See explanation section

Explanation:

The five activities of the operating cycle of a merchandiser with credit sales include the following activities. The arranging activities after merchandise acquisition are as follows:

D. Purchase merchandise; → A. Prepare merchandise for sale; → C. Make credit sales to customers; → E. Monitor and service accounts receivable; → D. Collect cash from customers on account.

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