When merchandise is purchased to resell to customers,it is recorded in the account entitled:

Question

Quizplus · Accepted Answer

Merchandise purchased with the intention of reselling is initially recorded in the Merchandise Inventory account. This account is an asset account and represents the cost of goods available for sale to customers. As goods are sold, the cost of those goods is transferred from Merchandise Inventory to Cost of Goods Sold, which represents the cost associated with the goods that were actually sold to customers.

When Merchandise Is Purchased to Resell to Customers,it Is Recorded