If Merchandise Inventory decreases from the beginning to the end of the fiscal period, the adjusting entry includes a debit to Income Summary.

Name: If Merchandise Inventory decreases from the beginning to the end of the fiscal period, the adjusting entry includes a debit to Income Summary.
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When Merchandise Inventory decreases, it indicates that inventory has been used or sold, which increases the cost of goods sold. The adjusting entry would debit Income Summary to reflect this increase in expenses.

If Merchandise Inventory Decreases from the Beginning to the End