yo yo yo what's good family my AFB family my DC ADE LER crew this is CP a strength
I am the strongest elation CPA in the state of Florida welcome back if you
want to see the best accounting playlist in the world when a Google car brain
here you can go there you can learn to do accounting you can pass your classes
you can get your degree you can make big money you can be a super popular
accountant get all the ladies or all the guys either ones fine what we're going
to do is a what seek a strength see past Rizal's what you're going to do today
I'm going to do inventory counting for beginners number 41 that's what we're
going to do is there 41 it's right after 40 and we're going to do inventory forty
and forty which is we started inventory we made a purchase we started in red
where it's an asset we bought one widget in 40 and in 40 41 the inventory it's
going to be the difference between hold on II I'm back live jump cutter it's
going to be this 41 inventory difference between perpetual inventory versus
periodic inventory now will tell what kind of my definition I thought hey if
you want the book definition you can just google search the definition of
these so let me give you kind of my definition of these you're either you
have inventory and you want to sell you want to sell some of your inventory
you're going to sell it either going perpetual inventory or using periodic
inventory perpetual inventory the reflectional inventory II that's
perpetual perpetual perpetual perpetual it's like keeps on going a perpetuity
annuity it just it keeps on going you keep up you keep up with it you keep up
with it perpetually going and the perpetual one is where you always keep
track of the amount available for sale and the amount sold every sale so you
keep on going you keep on going now I say with the way you know computers are
in technology that I would have to assume that most bigger corporations use
a perpetual inventory with the computers and such like that because it would be
easy to keep up with your inventory i or or or you can do periodic inventory once
you figure out at certain times so you just figure out at you don't you don't
keep up with it perpetually every every time you make a
transaction keep up the inventory you periodically do that certain times
certain times for inventory if you don't know like I guess the definition of or
you don't know like I'm telling you this and you're like what what the f but you
don't really you don't know perpetual means ongoing and periodic means certain
times so we're talking about inventory so like if you know that then you're
gonna you don't have to row you don't have to write it on on your paper every
morning with DCL or I'm sorry and go over GC lips this is your first time I'm
sorry but this is my mapping system and it's a debit credit asset or expense
level every revenue is the mapping system to keep everything straight
inventories an asset that's for awhile so you're going to write down your paper
every morning regardless if you know you're just going to do that and you're
going to write other stuff every morning and you know stuff that you can't
remember so you get an inventory so when you're doing your homework and you get
an inventory problem so you can't remember this but in the morning you've
been writing perpetual inventory um you know keep track keep track all the time
periodic inventory keep track certain times so you wrote that you're like him
and can't remember behaviors or questions so you look at your sheet and
then that helps with the answer and after a couple more times you're like I
don't need this extra sheet you know I know what the difference between
perpetual and periodic is so I guess it's kind of like a laugh now laugh now
cry later think you're going to put in some more time and figure out your
inventory currently or are you gonna you know not take the time now and you're
going to take it and you're going to figure anything out later let's jump in
I want to do one more thing when you're selling when you're selling when you're
selling widgets I know I wanted a widget right last time but anyways this is the
only thing our company sells is their only inventories widgets as the widget
we buy these for five hundred and we sell for a thousand 500 sell high debt
that they did right we get these widgets from a different different manufacturers
we get home
sometimes and big bulk amounts sometimes we get them in smaller amounts sometimes
so I mean if you buy a big shipment it costs more money I'm just trying to get
sometimes inflation I'm just trying to say that this is all we buy and sell as
these widgets so they're not always they're not always going to be $500
sometimes they're going to be you know we buy a thousand of them they're going
to be 482 Peaks 480 dollars a piece sometimes maybe there's a drought maybe
you know maybe like the plugs dry gotta go a different plug and you know I'm
saying he's sitting on he sit on these widgets during the drought so my dogs to
get them for five all day long he's a yellow 50 player I'm like now take your
leave at Hoani so what I'm saying is these are widgets are not going to cost
the same every time so in accounting we're going to get into
this your ears are going to value how much you're going to value how much each
widget each widget costs you by FIFO LIFO or weighted average because they
all don't bail them they'll don't cost the same for in our per for in our
example right now we've only we only bought one we only bought one widget for
five hundred dollars so that's that's how much per widget we either you know
FIFO LIFO or weighted average at something there's only one so it cost
five hundred so that's how much the as much they cost let's say hey we're going
to we're going to sell we're going to find itself we're going to sell our
widget for $1000 we're finally going to sell this widget for $1000 if you do the
perpetual if you do the perpetual inventory method here is we sold one
solar widget by 1 cell 1 by 1 cell 1 e if you got to that if you sold it and
our perpetual from keeping up with everything there's going to be 2 C lat
there's more now upfront there's two two journal entries for a sale or perpetual
now you got $1,000 chippers so you so you know you know that you know caching
it with our cache caches and that's how we're in debit that four thousand
dollars we're going to credit a thousand dollars now what did we get what did we
get the cash for we sold we sold a widget for a thousand dollars but now
this is the perpetual method so you know perpetual we keep up you keep track of
the inventory at all times okay we just sold we just sold a widget are we
keeping track of inventory with this no because on our books we still have a
widget for five hundred dollars so we need to get rid of this if we're going
to perpetual and keeping track of the inventory as we're going we need to get
rid of this inventory so that's going to be our credit because inventory is an
asset we're lowering the amount of inventory because we've sold it so we're
lowering inventory if inventory is a debit in the positive going up it's
going to be a credit going down so that's why our credit is over here
inventory credit of five hundred dollars that is in our that is our expense in
our perpetual system and that is going to be our debit because that's how much
the inventory cost us yoyoyo I just lost my train of thought on cost
of goods sold they're back at a few hours later I think I just want to say
the cost of goods sold is the expense it's the debit when you have a credit of
inventory when in your journal entry when you're doing perpetual and you want
to keep up with everything I think just for now you're going to have to know
that and if you had if you're if you're taking the inventory off the books you
know as a transaction to happen like in a perpetual system then
is a corresponding debit to that is going to be a cost of goods sold and as
its as it sounds it's the cost of the goods sold you guys you guys think that
keeps everything this is the journal entry for the perpetual if we sold one
you see you have two journal entries because you're keeping up with it now
you have the cost of goods sold you've got the inventory now if you had
if you had a periodic if you're doing a periodic you're just going to do it
certain you're just going to keep track at certain times of the inventory this
is just going to be your journal entry for when you sold you're going to have
you know hey I got a thousand dollars cash that's my debit I sold it for I
what do you do I sold a Wigner four thousand dollars so you can keep track
like that and then at the right at the end of the year you're going to back
that thing up back that thing up like you're playing the juvie
or it's like the political plug call me the socket on the plugs plug anyways
they call it a plug and that's what just you're going to have you have beginning
inventory plus purchases equals available for sales minus units sold
equals your every ending inventory so this is kind of the plug that you would
do for periodic inventory thank you very much for watching if you made it this
far you must have liked it at some regard please give it a like please give
this video a like it really helps to spread these videos out to a wider
audience and who doesn't need to know accounting this is so much fun am i
right Oh leave a comment to subscribe if you
don't we just hit 20k I'm going for 100k it's Tuesday today this is going to be
Wednesday's video let's go