What type of account is Merchandise Inventory and on which financial statement is it found? Does it have a debit or credit balance? Also, Chapter 7 states that "LCM" is a guiding principle for presenting inventory in the financials. What does LCM mean and what is the reasoning behind it?

College Accounting (Book Only): A Career Approach
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ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 3DQ: Using the perpetual inventory system, what account is debited when a business finds that its...
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What type of account is Merchandise Inventory and on which financial statement is it found? Does it have a debit or credit balance? Also, Chapter 7 states that "LCM" is a guiding principle for presenting inventory in the financials. What does LCM mean and what is the reasoning behind it?

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