Inventory

A merchandising business must maintain records of the number of units of each item held in inventory. All inventory owned by the business on the date of the physical inventory count should be included as follows:

All inventory on hand when physical count is taken + Merchandise in transit purchased FOB shipping point (the title transferred when it left the seller) + Merchandise in transit sold FOB destination (the title has not transferred until it reaches the buyer) + Merchandise on consignment in other locations (products that we have not sold and that belong to us until they sell) - Merchandise held for others on consignment (products that we do not own but have agreed to sell for another company) = Merchandise inventory shown on balance sheet

	all inventory on hand when the physical count is taken
+	merchandise in transit purchased, FOB shipping point (the title transferred when it left the seller)
+	merchandise in transit sold, FOB destination (the title has not transferred until it reaches the buyer)
+	merchandise on consignment in other locations (products that we have not sold and that belong to us until they sell)
-	merchandise held for others on consignment (products that we do not own but have agreed to sell for another company
=	merchandise inventory shown on balance sheet

Loading acctg211..

Inventory