Where is merchandise inventory listed on the balance sheet?

Where is merchandise inventory listed on the balance sheet?

Merchandise inventory is reported as a current asset on a retailer’s balance sheet. A current asset is one that will provide an economic benefit during a given accounting period, typically a year.

How is inventory listed on the balance sheet?

Inventory is an asset and its ending balance is reported in the current asset section of a company’s balance sheet. Inventory is not an income statement account. However, the change in inventory is a component in the calculation of the Cost of Goods Sold, which is often presented on a company’s income statement.

What is inventory on a classified balance sheet?

Inventory is the raw materials used to produce goods as well as the goods that are available for sale. It is classified as a current asset on a company’s balance sheet. The three types of inventory include raw materials, work-in-progress, and finished goods.

Does merchandise inventory appear on the balance sheet of a service company?

Merchandise inventory is reported on the balance sheet as a current asset. Merchandise inventory refers to products a company owns and intends to sell. Merchandise inventory may include the costs of freight in and making them ready for sale. Merchandise inventory appears on the balance sheet of a service company.

What is included in the merchandise inventory account?

Merchandise inventory is the account on a balance sheet that reflects the total amount paid for products that are yet to be sold. As a current asset, merchandise inventory is basically a holding account for inventory that’s waiting to be sold.