The document discusses maintaining inventory levels and processing related accounting transactions using a computerized inventory system. Periodic physical inventory counts are taken and entered into the computer which compares the counts to the inventory ledger and adjusts balances for any overages or shortages. Additional data on optimal purchase quantities and minimum levels can also be entered to help the system determine when to generate purchase orders and keep inventory amounts at targeted levels. Sales data from electronic cash registers are accumulated daily and used to make accounting entries that debit cash and credit sales as well as cost of goods sold and inventory accounts.
The document discusses maintaining inventory levels and processing related accounting transactions using a computerized inventory system. Periodic physical inventory counts are taken and entered into the computer which compares the counts to the inventory ledger and adjusts balances for any overages or shortages. Additional data on optimal purchase quantities and minimum levels can also be entered to help the system determine when to generate purchase orders and keep inventory amounts at targeted levels. Sales data from electronic cash registers are accumulated daily and used to make accounting entries that debit cash and credit sales as well as cost of goods sold and inventory accounts.
The document discusses maintaining inventory levels and processing related accounting transactions using a computerized inventory system. Periodic physical inventory counts are taken and entered into the computer which compares the counts to the inventory ledger and adjusts balances for any overages or shortages. Additional data on optimal purchase quantities and minimum levels can also be entered to help the system determine when to generate purchase orders and keep inventory amounts at targeted levels. Sales data from electronic cash registers are accumulated daily and used to make accounting entries that debit cash and credit sales as well as cost of goods sold and inventory accounts.