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What is the difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
How do you account for scrap inventory?
Answer Usually scrap Inventory is written of as waste or included in the running operations of a company because while it may be called scrap, it may have a use. If it doesn't have a use it's usually sold to the highest bidder and that money goes back into the budget for the following year.
How does inventory affect profit?
Inventory PurchasesWhen you purchase items for inventory, the transaction will affect your balance sheet, the financial statement that provides a snapshot of your company's worth based on its assets and liabilities. You record the value of the inventory; the offsetting entry is either cash or accounts payable, depending on the method you used to purchase the goods. At this point, you have not affected your profit and loss or income statement.Inventory SoldOver time, you use the items in your inventory to fill customer orders. You record the sales in an income statement account; the offset to sales is either cash or accounts receivable, which are both balance sheet accounts. Because you used inventory from a balance sheet account and recorded sales on your income statement, your profits are overstated unless you make the necessary adjustment. You need to reduce your inventory for the value of the items sold, with the offsetting entry to a cost-of-goods sold account. Your cost-of-goods sold account is an income statement account. You have now affected your profit and loss.Inventory AdjustmentsIn the normal course of business, you might find that the balance in your inventory is inaccurate. This might be due to breakage occurring after the goods were in your possession, the failure to add returned goods back to your inventory or errors that you simply cannot explain. You might also have products in your inventory that you know you cannot sell for full price, such as a supply of the current year's calendars remaining in June. You need to adjust your inventory to an accurate value, so you credit inventory and debit your cost-of-goods sold account, which again affects your profit and loss statement.Inventory Reserve AccountA major inventory adjustment, such as adjusting inventory only at year-end, can play havoc with your profit and loss statement for the period in which you make the adjustment. To avoid skewing the numbers, companies sometimes use an inventory reserve account. The basic idea is that they know that a certain percentage of their inventory has historically been lost or become obsolete. Each month, they record an amount, typically a percentage of the inventory value, in an inventory reserve account. The inventory reserve account is a balance sheet account and should have a negative balance; when netted against your positive-balance inventory accounts, you have a more accurate picture of your inventory's worth. The offset to the entry is your cost-of-goods sold account. When you need to adjust your inventory, you record the entry to your inventory reserve account and offset it against your cost-of-goods sold account. By taking smaller, more frequent adjustments, you do not risk a major impact.
Can you switch from lifo to fifo and then back to lifo?
You cannot switch in between inventory valuation methods to manipulate earnings. Disclosures are required in financial statements for the change in valuation methods.
What are the advantages of back flush costing?
1- less entries have to be passed so it saves time. (major benefit) 2- less costly as less documentation have to be maintained. 3- it uses JIT environment which saves holding cost of inventory
On Yoville how can your get removed inventory back?
you cant.
How do you put a door back in your inventory miniplanet?
you can't put it back
How do you zoom your inventory back in on Minecraft?
If you open the menu, then click on GUI scale, it will adjust the size of you inventory
How do you get your trophies back on Moshi Monsters?
If you just put the trophies into your Inventory (treasure chest), you should be able to find them in the Inventory and put them back into your room. If you sold them at Dodgy Dealz, you can not get the trophies back.
How do you get your trophies back if you delete them on Moshi Monsters?
If you just put the trophies into your Inventory (treasure chest), you should be able to find them in the Inventory and put them back into your room. If you sold them at Dodgy Dealz, you can not get the trophies back.
Where can you get an example of slogan on Books?
The back of books
What books start from the back?
I have seen Japanese comic books, and other books, that start at the back of the book. Well, I guess for them it is the front? Anyways, I believe most, if not all, books start from the back.
In sims 3 how do you get your stuff back after you move?
You go to your family inventory
What books are at the back of no way back?
Plz help me I'm shopping and I'm looking for her two books. It's by Linda newbery there are other books by her at the back of the book no way back
How do you sell Mafia Wars inventory?
To sell inventory, click on the inventory tab, put in however many items you want to sell, and then click the sell button. You should know that you will only beable to sell back inventory items for half as much as you originally paid for them.
What is being done to save the blue whales?
There putting them in the zoo's breeding them and then putting them back in the wild
Which is correct - They put away the books or they put back the books?
Both "put away the books" and "put back the books" are correct, but they can have slightly different meanings. "Put away the books" implies that the books were stored or placed in a designated spot, while "put back the books" suggests that the books were returned to where they were originally found.
