Example of perpetual inventory procedure, Accounting Basics

Assignment Help:

Q. Example of perpetual inventory procedure?

The Perpetual inventory procedure Companies use perpetual inventory procedure in a range of business settings. In the past companies that sold merchandise with a high individual unit value such as furniture, automobiles and appliances used perpetual inventory procedure. Today computerized cash scanners, registers and accounting software programs automatically keep track of inflows and outflows of each inventory item. Computerization composes it economical for many retail stores to use perpetual inventory procedure even for goods of low unit value such like groceries.

Under perpetual inventory method the Merchandise Inventory account provides close control by showing the cost of the goods that are imaginary to be on hand at any particular time. Companies debit the Merchandise Inventory account for every purchase and credit it for each sale therefore that the current balance is shown in the account at all times. Habitually firms as well maintain detailed unit records showing the quantities of each kind of goods that should be on hand. Company personnel as well take a physical inventory by actually counting the units of inventory on hand.


Related Discussions:- Example of perpetual inventory procedure

Consignment, A of surat consigned goods to b of jaipur

A of surat consigned goods to b of jaipur

Eco-02, define accounting.Briefly explain the accounting concepts which gui...

define accounting.Briefly explain the accounting concepts which guide the accountant at the recording stage.

Accounting theory assignment, Just i need a news about public interest theo...

Just i need a news about public interest theory which is after 1 Mar 2013 for my assignment.

Accounting, briefly explain the accounting concepts which guide the account...

briefly explain the accounting concepts which guide the accountant at the recording stage

Illustrate about accounting cycle, Q. Illustrate about accounting cycle? ...

Q. Illustrate about accounting cycle? The accounting cycle is a series of points performed during the accounting period some throughout the period and some at the end to reco

Aging Approach., At the end of 2011 Samuda reported a balance in Account re...

At the end of 2011 Samuda reported a balance in Account receivable of $620,000 and estimated that $12,400 of this account would likely be uncollectible. The allowance for doubtful

ACC 250, Matilda Crone owns and operates a public relations firm called Dan...

Matilda Crone owns and operates a public relations firm called Dance Fever. The following amounts summarize her business on August 31, 2014:

Social responsibility accounting, Social Responsibility Accounting: So...

Social Responsibility Accounting: Social responsibility accounting is a modern phase in the development of accounting and owes its birth to rising social awareness that has be

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd