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Prepare Your Inventories, Accountings, and Petitions to the Form

Prepare Your Inventories, Accountings, and Petitions to the Form

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in this video I'm going to show you the journal entry to record the purchase of inventory now the journal entry is going to be a little bit different based on whether the company's a retailer or a manufacturer and also based on whether the company purchased the inventory on account which means it was a credit purchase or whether the company paid cash upfront for the inventory but what is going to be common across all the transactions is the inventory is initially going to be recorded at its cost and remember that the cost of the inventory includes not just the purchase price that appears on the invoice but also any costs that are incurred to bring the inventory to its intended location which we typically call Freight in okay so shipping cost to get it to a warehouse or to the company's store and to make the inventory ready for sale so any inspection or Preparation costs so let's jump right into an example let's say that we've got a retail

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