1. INVENTORY TANGIBLE ITEMS HELD FOR RESALE IN THE ORDINARY COURSE OF BUSINESS PRESENTED ON THE BALANCE SHEET UNDER CURRENT ASSETS AT THE LOWER OF COST OF MARKET

2. JOURNAL ENTRIES NEEDED ACQUIRE ADJUST DISPOSE

3. TWO METHODS OF JOURNAL ENTRIES FOR INVENTORY PERPETUAL PERIODIC

4. PERPETUAL JOURNAL ENTRIES FOR INVENTORY ACQUIRE INVENTORY XXX CASH XXX FOR THE AMOUNT PAID

5. TO SELL INVENTORY CASH XXX SALES XXX COST OF GOODS SOLD YYY INVENTORY YYY THESE ARE TWO DIFFERENT NUMBERS. DEBIT CASH FOR THE AMOUNT RECEIVED FROM THE CUSTOMER, CREDIT INVENTORY FOR THE AMOUNT THE BUSINESS HAD TO PAY TO ACQUIRE THE INVENTORY

6. WHICH INVENTORY IS SOLD DEPENDS ON METHOD OF IDENTIFYING INVENTORY FIRST IN FIRST OUT LAST IN LAST OUT WEIGHTED AVERAGE SPECIFIC IDENTIFICATION

7. FIFO ASSUME FIRST ITEMS PURCHASED ARE THE FIRST ITEMS SOLD

8. LIFO ASSUMES LAST ITEM PURCHASED ARE THE FIRST ITEMS SOLD

9. INVENTORY RECORD KEEPING EXCEL SHEETS NEEDED: LIST OF INVENTORY PURCHASED LIST OF INVENTORY SOLD LIST OF INVENTORY ON HAND

10. INVENTORY SHEETS HEADINGS DATE # OF UNITS COST/UNIT TOTAL

11. COST OF GOODS SOLD STATEMENT BEGINNING INVENTORY XXX PLUS PURCHASES XXX TOTAL AVAILABLE XXX LESS ENDING INVENTORY XXX COST OF GOODS SOLD XXX

12. PERIODIC JOURNAL ENTRIES ACQUIRE PURCHASE XXX CASH XXX

13. TO SELL PERIODIC METHOD CASH XXX SALES XXX NO ADJUSTMENT IS MADE TO INVENTORY AT THE TIME OF SALE

14. END OF YEAR PERIODIC JOURNAL ENTRIES INCOME SUMMARY XXX INVENTORY XXX CLEAN INVENTORY OUT TO ZERO INVENTORY XXX INCOME SUMMARY XXX BRING INVENTORY TO THE ACTUAL PHYSICAL COUNT

15. IF THERE IS A DECLINE IN THE VALUE OF THE INVENTORY INVENTORY WAS PURCHASE FOR $10 BUT NOW ONLY WORTH $6 DECLINE IN VALUE OF INVENTORY $4 INVENTORY $4