The Merchandise Inventory account is an expense account that is used for goods purchased that the business owns and intends to resell to customers,as well as for purchase of office supplies and equipment.

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The Merchandise Inventory account is actually an asset account that reflects the cost of goods that a business owns and intends to sell to customers. It is not an expense account. Office supplies and equipment would typically be expensed immediately or depreciated over time, depending on their useful life.

The Merchandise Inventory Account Is an Expense Account That Is