Retail businesses record the stock of goods kept on hand for resale in an account called the Merchandise inventory account.
Merchandise inventory is an asset account. This account is reported as a current asset on a retailer's balance sheet. During a given accounting period, a current asset is one that will provide an economic benefit.
On the balance sheet of some types of businesses, the Merchandise inventory can be the single largest asset. Merchandise inventory includes the goods that have been acquired by a distributor, retailer, wholesaler or from suppliers, with the intent of selling the goods to third parties.
Hence, in the merchandise inventory account, retail businesses record the stock of goods kept on hand for resale.
To learn more about Merchandise inventory here:
https://brainly.com/question/14977687
#SPJ4
