Accounting for Inventory
Inventory is stock or merchandise that a
company purchases in order to sell to a
consumer to make a profit. Supermarkets
and retail outlets purchase stock from
varies suppliers in order to sell it back to
consumers for the sole purpose of making
Learn how business entities account for
inventory. Understand how to record the
purchase and sale of inventory on credit.
Record purchase and sale returns. Account
for stock loss and stock gain. Use stock
cards and stock control accounts to keep
an accurate record of inventory on hand.
Accurately record the true value of
inventory on hand by using the lower of
cost price or net realise value.