Which of the following is the correct formula to calculate average merchandise inventory?

A) Average merchandise inventory = (Beginning merchandise inventory - Ending merchandise inventory) / 2
B) Average merchandise inventory = (Beginning merchandise inventory x Ending merchandise inventory) / 2
C) Average merchandise inventory = (Beginning merchandise inventory / Ending merchandise inventory) / 2
D) Average merchandise inventory = (Beginning merchandise inventory + Ending merchandise inventory) / 2

D

Business

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