Transcription of Chapter Outline Notes - Saddleback College
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Chapter Outline Notes - Saddleback College
Chapter 05 - Inventories and Cost of Sales 5-3 Chapter Outline Notes I. Inventory Basics A. Determining Inventory Items Merchandise inventory includes all goods that a company owns and holds for sale. The following inventory items require special attention: 1. Goods in Transit If ownership has passed to the purchaser, the goods are included in the purchaser s inventory. Ownership is determined by reviewing the shipping terms. 2. Goods on Consignment goods shipped by the owner, called the consignor, to another party, the consignee.
Chapter 05 - Inventories and Cost of Sales 5-3 Chapter Outline Notes I. Inventory Basics A. Determining Inventory Items Merchandise inventory includes all goods that a company owns and
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