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Tracking Inventory

Tracking Inventory. Form E Businesses track inventory in different ways. We will be using a stock (inventory) record for a perpetual inventory system. A continuous record of merchandise inventory increases and decreases, and balance on hand is known as perpetual inventory . . Example: .

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Tracking Inventory

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  1. Tracking Inventory Form E Businesses track inventory in different ways. We will be using a stock (inventory) record for a perpetual inventory system. A continuous record of merchandise inventory increases and decreases, and balance on hand is known as perpetual inventory.

  2. Example: • Increase in Inventory: • Transaction: January 13, 2014. Purchased 500 pairs of Asics Wrestling Shoes on Account from Asics at a cost of $29,995, P78. Always include the date Calculate the new balance by adding number of units purchased. Use these two columns for purchases only

  3. Example Continued: • Decrease in Inventory-Sales on account • January 21, 2014. Sold 50 pairs of Asics Wrestling Shoes on account to Cornell University Wrestling for $5,499.50, plus tax. S57. Calculate the new balance by subtracting number of units sold from previous balance. Always include the date Use these two columns for sales only

  4. Example Continued: • Decrease in Inventory-Cash and Credit Card Sales (store only) • January 25, 2014. Recorded cash and credit card sales for 15 pairs of Asics Wrestling Shoes for $1,649.85, plus tax. T31. Calculate the new balance by subtracting number of units sold from previous balance. Always include the date Use these two columns for sales only

  5. Example Continued: • Decrease in Inventory-Online Sales (online only) • January 31, 2014. Recorded online credit card sales for 27 pairs of Asics Wrestling Shoes for $2,969.73. Plus tax and shipping. W31. (W = Web Sales) Always include the date Calculate the new balance by subtracting number of units sold from previous balance. Use these two columns for sales only

  6. With a Partner, complete an Inventory Record for the following transactions then answer the questions on the inventory record . • February 3, 2014. Purchased 80 Roku 3 Smart TVs on Account from Roku, Inc. at a cost of $3,199.20, P8. • February 5, 2014. Sold 26 Roku 3 Smart TVson account to Bloomsburg University for $1,819.74. S5. • February 10, 2014. Recorded cash and credit card sales for 11 Roku3 Smart TVs for $769.89. T10. • February 13, 2014. Recorded online credit card sales for 17 Roku 3 Smart TVsfor $1189.83. W13. • February 18, 2014. Purchased 50 Roku 3 Smart TVs on Account from Roku, Inc. at a cost of $1,999.50, P9. • February 21, 2014. Sold 21 Roku 3 Smart TVs on account to MiTech Corp. for $1469.79. S6. • February 25, 2014. Recorded cash and credit card sales for 13 Roku 3 Smart TVsfor $909.87. T25. • February 28, 2014. Recorded online credit card sales for 18 Roku 3 Smart TVsfor $1,259.82. W31.

  7. Now Apply to Your Business • Open a blank Word Document • Write two transactions • #1: Purchase Merchandise on Account from a Vendor (approx $10,000 worth, you calculate how many units that would be) • #2: Sell Merchandise from your store (approx 25% of units purchased). Don’t forget sales tax. • Open Form E from Mr. Norbury’s webpage, start your inventory record and include increases and decreases from the two transactions that you just wrote.

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