A decrease in the merchandise inventory account occurs when units of inventory purchased are greater than units of goods sold.

Question

Quizplus · Accepted Answer

A decrease in the merchandise inventory account occurs when units of goods sold are greater than units of inventory purchased. This is because the inventory account reflects the amount of inventory still available for sale, and when more units are sold than purchased, the inventory balance decreases.

A Decrease in the Merchandise Inventory Account Occurs When Units