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

Example: Increase in Inventory: Transaction: January 13, 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.

Example Continued: Decrease in Inventory-Sales on account January 21, Sold 50 pairs of Asics Wrestling Shoes on account to Cornell University Wrestling for $5,499.50, plus tax. 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.

Example Continued: Decrease in Inventory-Cash and Credit Card Sales (store only) January 25, Recorded cash and credit card sales for 15 pairs of Asics Wrestling Shoes for $1,649.85, plus tax. 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.

Example Continued: Decrease in Inventory-Online Sales (online only) January 31, Recorded online credit card sales for 27 pairs of Asics Wrestling Shoes for $2, Plus tax and shipping. 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.

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

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. 7