If beginning inventory is $80,000 and ending inventory is $10,000, the balance of the merchandise inventory account after adjustments will be $70,000.

Question

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The beginning inventory of $80,000 minus the ending inventory of $10,000 would give a balance of $70,000, but this does not take into account any purchases or sales during the period. Adjustments need to be made for these transactions to determine the correct balance of the merchandise inventory account.

If Beginning Inventory Is $80,000 and Ending Inventory Is $10,000