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. 1

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. 2 Use these two columns for purchases only Always include the date Calculate the new balance by adding number of units purchased.

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. S57. 3 Always include the date Use these two columns for sales only Calculate the new balance by subtracting number of units sold from previous balance.

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. T31. 4 Always include the date Use these two columns for sales only Calculate the new balance by subtracting number of units sold from previous balance.

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. W31. (W = Web Sales) 5 Always include the date Use these two columns for sales only Calculate the new balance by subtracting number of units sold from previous balance.

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 TVs on account to Bloomsburg University for $1,819.74. S5. February 10, 2014. Recorded cash and credit card sales for 11 Roku 3 Smart TVs for $769.89. T10. February 13, 2014. Recorded online credit card sales for 17 Roku 3 Smart TVs for $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 TVs for $909.87. T25. February 28, 2014. Recorded online credit card sales for 18 Roku 3 Smart TVs for $1,259.82. W31. 6