In a perpetual inventory system,the entry that adjusts the Merchandise Inventory account based on the physical count equals the merchandise inventory balance before adjustment less actual merchandise inventory on hand.

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In a perpetual inventory system, the Merchandise Inventory account is continuously updated. The adjustment entry is made to reconcile the recorded inventory with the actual physical count, which involves subtracting the actual inventory on hand from the recorded balance.

In a Perpetual Inventory System,the Entry That Adjusts the Merchandise