MANAGEMENT

Detailed explanation-1: -For merchandise inventory, record the amount of the ending inventory in the Balance Sheet Debit column. For unearned revenue, record the unearned revenue account in the Balance Sheet Credit column and the revenue account in the Income Statement Credit column.

Detailed explanation-2: -Beginning inventory is the book value of inventory at the beginning of an accounting period. It is carried forward as the value of ending inventory in the preceding period.

Detailed explanation-3: -Beginning inventory is used in the accounting process to help measure a company or organization’s financial health. It is the same as the ending inventory of the previous accounting period, and it is considered a current asset for accounting purposes.

Detailed explanation-4: -Under periodic inventory procedure, a merchandising company uses the Purchases account to record the cost of merchandise bought for resale during the current accounting period. The Purchases account, which is increased by debits, appears with the income statement accounts in the chart of accounts.