Cost of the goods buy earlier plus cost of goods buy later and divided with the total amount of the goods.
Merchandise inventory:
Merchandise turnover ratio = 360 / 40 = 9 times
The discounts reduce the cost of the merchandise inventory.
Merchandise Inventory is a stock of products on hand of a merchandise company intended for sale.
Merchandise Inventory account
It is a liquidity measurement ratio of a company. It is coumpted by dividing the average inventory by the average daily cost of goods sold(cost of goods sold divided by 365). It is a rough measure of the length a company takes to acquire, sell, and replace the inventory. Therefore, a company with a high numbers of days sales in merchandise inventory indicates the company takes long time to finish a inventory circle which is not a good thing for the company
Merchandise Inventory is an asset account that shows up on the balance sheet.
That is the correct spelling of the word "inventory" (stock of merchandise).
It is true that merchandise Inventory is found on the income statement.
Merchandise Inventory is an asset account, so the normal balance is Debit.
As a reduction to merchandise inventory
YES