Explain why the merchandise inventory account will usually require adjustment at year end. account will usually require adjustment at year-end.

The merchandise inventory account will need an actual count done at the end of the year in order to check accuracy and correct any errors in the detailed records.

A merchandising company generally has the same types of adjusting entries as a service company. However, a merchandiser using a perpetual system will require one additional adjustment to make the records agree with the actual inventory on hand.

At the end of each perios, for control purposes, a merchandising company that uses a perpetual sytem will take a physical count of its goods on hand. The company's unadjusted balance in inventory usually does not agree with the actual amount of inventory on hand. The perpetual inventory records may be incorrect due to recording errors, theft, or waste. Thus, the company needs to adjust the perpetual records to make the recorded inventory amount agrre with the inventory on hand.

To learn more about Accounting for Merchandising Operations, see the book "Accounting Principles".

Tuesday, April 11 2017
Source: https://books.google.com/books?id=dEkrBQAAQBAJ&pg=PA222&lpg=PA222&dq=explain+why+the+merchandise+inventory+account+will+usually+require+adjustment+at+year-end&source=bl&ots=3-pelVfm32&sig=nEpVUcMD5bEXb1pGIIpy1ZzN-MM&hl=en&sa=X&ved=0ahUKEwjnqsO4zJzTAhUh04M