In a perpetual inventory system, the Merchandise Inventory account must be closed at the end of the accounting period.

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In a perpetual inventory system, the Merchandise Inventory account is constantly updated as inventory is bought and sold, and is not closed at the end of the accounting period. Instead, the ending balance of the Merchandise Inventory account is used to calculate the cost of goods sold for the period.

In a Perpetual Inventory System, the Merchandise Inventory Account Must