Typically, a significant current asset for a merchandiser is The safeguarding of merchandise inventory includes taking a(n) at least once per year. A authorizes the purchase of inventory, while a is issued when the purchase is received into merchandise inventory. A check is issued to the vendor when there is agreement between the purchase order, receiving report, and vendor invoice. Merchandise inventory is maintained in the accounting records under the perpetual inventory method using a A merchandising business purchases goods for resale. A merchandiser makes a profit by selling goods at a price higher than the cost of the goods sold. While the underlying business transaction is straightforward, determining of the cost of the merchandise sold often requires an inventory cost flow assumption when similar units are purchased at different units costs during the period. Identify cost flow assumptions to their description: Often, specification identification may not be practical, so one of the other three cost flow assumptions is assumed. The cost flow assumption can be applied under either the perpetual or periodic inventory system. The cost of merchandise sold and merchandise inventory is determined from the inventory cost flow assumption. To illustrate, beginning inventory, purchases and sales of shoes are shown below for Grant Co. using a perpetual inventory system