The calculation of goods available for sale during the year is affected by the previous year's ending merchandise inventory.

Question

Quizplus · Accepted Answer

The calculation of goods available for sale is calculated by adding the beginning inventory to the purchases during the year. However, the beginning inventory is affected by the ending inventory of the previous year. Therefore, the previous year's ending merchandise inventory does have an impact on the calculation of goods available for sale during the current year.

The Calculation of Goods Available for Sale During the Year