Merchandise Inventory Account is the record of current inventory owned by a business. It captures how much merchandise is available to be sold and the cost of each item. It also tracks purchases and sales of items, as well as any changes in value due to discounts or theft. By tracking this information, businesses can easily compare their stock levels and pricing with those of competitors, helping them stay competitive in the market. Additionally, if a company experiences a sudden surge or drop in sales, an accurate Merchandise Inventory Account allows them to quickly adjust their inventory levels to meet customer demand.