What will be the account affected by an adjusting entry to a merchandise inventory [Archive]

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lin lin grace

Sep 1, 2012, 02:42 AM

What account in the TRIAL BALANCE will be affected if there is an adjustment to the merchandise inventory, Ending Balance?

paraclete

Sep 1, 2012, 04:32 AM

It depends what caused the adjustment, incorrect count, purchases not brought to account, sales not brought to account. Ultimately profit might be affected depending upon the type of accounting for inventory