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Alpha Teach Yourself Bookkeeping in 24 Hours by Carol Costa

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Hour 8

Inventory Control, Vendors, and Credit Terms

Chapter Summary

In this hour you will learn about…

  • Inventory
  • Purchases and Accounts Payable
  • Vendor ledgers
  • Credit Terms
  • Inventory adjustments

Manufacturing companies, retail and wholesale operations, and restaurants all depend on inventory to keep their businesses running and profitable. As you have learned, some companies are large enough to have a separate department that handles inventory and another that handles the purchases needed to replenish their inventory.

 

Inventory is often the most valuable item on a company’s Balance Sheet. Like Accounts Receivable, banks have been known to accept inventory as collateral for loans.

STRICTLY DEFINED

Collateral is property pledged to secure a debt. It must have ...

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