American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as
A)finished goods inventory.
B)work in process inventory.
C)merchandise inventory.
D)raw materials inventory.

Question

Quizplus · Accepted Answer

Merchandise inventory refers to goods that are ready for sale in a retail environment, and are waiting to be sold to customers. The denim jeans on the shelves at American Eagle Outfitters are merchandise inventory because they are ready for sale to customers.

American Eagle Outfitters Classifies the Denim Jeans on the Shelves