which account does a merchandiser use that a service company does not use?

Cost of Goods Sold, Inventory, Sales Revenue.

A service company deals in services rendered to sell those services. A merchandiser sells only goods and would have an account for cost of goods sold, and inventory (if a wholesale operation), and sales revenue for each sale that are not made directly to the customer. If the business is retail, then this same facet is accounted for in the accounts receivable account as well as merchandise income that will be recorded at a later date which brings us back around…cost of goods sold, inventory, and sales revenue.