Ron_W3A1 - physical counting of the inventory at the end of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ron_W3A1 Case 1 1. The type of inventory system I would us for my Bed Bath & Beyond store would be the perpetual inventory system. Some of the reasons I would us the perpetual inventory system are; I could “keep a running record of all inventory as it is bought and sold” (Hornger & Harrison 2007). The perpetual inventory system will all so let me keep up- to-the-minute records and also show me my current inventory. 2. The way you compute net purchases is; Inventory – Purchase Returns & Allowances – Purchase Discounts + Freight in = Net Purchase. The way you compute net sales is; 3. Most businesses take a physical count of inventory at least once a year. They do the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: physical counting of the inventory at the end of the year. I would try to do the physical count of inventory at least two times a year or every six months. By doing a physical count of the inventory will give you the actual inventory on hand. The company will would take Inventory Balance Before Adjustment Actual Inventory on Hand = Adjusting Entry to Inventory. 4. Net income is the highest under the FIFO. The way to pay the least amount of income tax it to use the LIFO. References Horngren, C. & Harrison W. (2007). Accounting (7 th ed) . Upper Saddle River, NJ: Pearson Prentice Hall....
View Full Document

This note was uploaded on 01/05/2011 for the course ACC 205 taught by Professor Robertcarr during the Winter '10 term at Ashford University.

Page1 / 2

Ron_W3A1 - physical counting of the inventory at the end of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online