MANAGEMENT

Detailed explanation-1: -Closing stock is the unsold Goods that are remains in stores (finished goods, raw materials, work-in-process), in accounting terminology it is called as Asset. Closing stock = Opening stock + Purchases-Cost of goods sold.

Detailed explanation-2: -Merchandise Inventory, end. – more commonly referred to as stocks, refers to merchandise that remain unsold at the end of the accounting period.

Detailed explanation-3: -Merchandise inventory comprises the goods that retailers and resellers have purchased with the intent to sell to customers. Merchandise inventory is categorized as a current asset on the company’s balance sheet. For some retailers, it is their biggest asset.

Detailed explanation-4: -freight-out. 14. refers to goods and merchandise left at the end of operation or accounting period.

Detailed explanation-5: -Let’s say a furniture store buys desks that will be sold directly to the end customer. The store also buy computers for employees to use regularly. Here, the desks can be categorized as merchandise inventory, but not the computers.