Question

What is the importance of merchandise inventory in accounting cycle?​

Answer 1

Answer:

Merchandise inventory (also called Inventory) is a current asset with a normal debit balance meaning a debit will increase and a credit will decrease. To determine the cost of goods sold in any accounting period, management needs inventory information.

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Answer 2

Explanation:

Merchandise inventory (also called Inventory) is a current asset with a normal debit balance meaning a debit will increase and a credit will decrease. To determine the cost of goods sold in any accounting period, management needs inventory information.