The credit to the merchandise inventory account when making adjustments at the end of the accounting period will be the same amount as was debited at the end of the previous accounting period.

Question

Quizplus · Accepted Answer

The credit to the merchandise inventory account when making adjustments at the end of the accounting period will be the same amount as was debited at the end of the previous accounting period because the beginning inventory balance for the current period is equal to the ending inventory balance for the previous period.

The Credit to the Merchandise Inventory Account When Making Adjustments