When preparing the unadjusted trial balance in a periodic inventory system,the amount that appears as Merchandise Inventory is the ending inventory amount.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the unadjusted trial balance shows the beginning inventory amount, not the ending inventory. The ending inventory is determined at the end of the period through a physical count.

When Preparing the Unadjusted Trial Balance in a Periodic Inventory