For a business using the periodic inventory method, the balance of Merchandise Inventory in the unadjusted trial balance represents the beginning balance plus all purchases of merchandise made in the fiscal period.

Question

Quizplus · Accepted Answer

In the periodic inventory method, the balance of Merchandise Inventory in the unadjusted trial balance represents only the beginning balance of the inventory. Purchases made during the period are recorded in a separate Purchases account and are not added to the Merchandise Inventory account until the end of the period, after a physical count.

For a Business Using the Periodic Inventory Method, the Balance