Accounting for Beginners #41 / Perpetual Inventory Vs. Periodic Inventory/ Asset / Journal Entry

[@marinam607]

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[@CPAStrengthPassion]

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[@aldebaran_]

8:04 "Buy 1, sell 1... Eee" I love that part!

[@CPAStrengthPassion]

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[@danicaquinto1324]

dcadeler. Nice. You're a very great teacher. 41 videos is a lot but I had fun. It's a great way to review those accounting lessons. Thanks a lot. More powers.

[@CPAStrengthPassion]

OMG, you watched all 41. Get yourself a mental evaluation to see if my crazy rubbed off !!!! Thank you for your support, i'm glad you learned and had some entertainment along the way.

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[@CPAStrengthPassion]

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Good Job, I love your passion and energy. Please keep it up and upload more intermediate accounting video

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[@JessicaAsgra-vc2cc]

Sir can u pls make a vid about correcting entries? 🙏🙏

[@ShineDawg]

thanks for the video, I always had trouble with inventory, you make accounting so easy and sooo much fun!!!

[@CPAStrengthPassion]

Thank you for your continued support. It is appreciated.

[@compuace]

I have to admit that I did not find this easy as your other videos. I hope it becomes clearer when watching your next video. Thank you for taking time out to do this

[@CPAStrengthPassion]

+haji majid some subjects are harder then others for me to teach

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Are you going to be uploading more videos?

[@CPAStrengthPassion]

Yes, after tax season

[@AseekingTruth]

Thanks for the video. :) Your videos always help me understand things a little better than I did before.

[@CPAStrengthPassion]

Nice, I'm glad to help out. Thanks for your support. Yup, learn a little bit at a time Consistently and you will eventually know a lot.

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Thank you, Sir ! I am able to write my discussion post, you helped me understand it

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Glad to help

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Thank you for doing this. I have been struggling with Accounting. Now I feel like I get it.

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[@anushas1901]

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+Anusha s thank you for your support.

[@johngerardpimentel3783]

which accounts between cost of goods sold and income summary would appear on a worksheet for a merchandising entity that uses the perpetual inventory system?

[@pindropraw]

Learning and laughing at the same time. You're a fucking genius man lol

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Welcome

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[@nicholasls2204]

when you get a chance can you make a video on multistep income statement and computing the cost of goods thanks man

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Accounting Plug 🔌

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The plugs plug. Dey call me the socket

[@jh276]

question, please. when you purchased the item, JE was DR: INV CR: CASH? When you sold it, JE was DR: CASH CR: REV. DR: EXPENSE CR: INV? So at the end after you cancel each others out, it's DR: EXP (COGS) CR: REV??? that seems odd...

[@genocolombo]

uhm im kinda confused cause my teacher in accounting says when your the buyer and you purchase inventory you DR:INV and CR:CASH but if your the seller you DR:CASH and CR:SALES REV. then you do DR:COGS and CR:INV

[@fred51990]

thanks for the video!

[@CPAStrengthPassion]

Of course. I love making these videos.

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hey I'd I'm back! family member has cancer and needed emergency surgery. your videos are still very informative and lately a great distraction.

[@CPAStrengthPassion]

Sorry to hear about family. I hope everything works out. To be able to be a distraction during a stressful time makes me feel happy.

[@checkdown3774]

If I'm training to be an accountant should I master booking keeping first, or just jump right into double entry accounting books?

[@CPAStrengthPassion]

+Joe Blow to me bookkeeping is a bunch of journal entries made of from double entry accounting. So they are kind of the same.

[@SS-xk2wx]

So I think I understand this but in the perpetual inventory it says cash $1,000 and sales $1,000. Under purchase you have inventory $500 and cash $500. The inventory money goes to sales? I'm just slightly confused because you use the same amount of cash in each "slot"..I guess I would call it

[@CPAStrengthPassion]

+Sarah Sparks I felt there is something off with this video when I made this video. I'm gonna have to rewatch it. I'm sorry 😐 inventory wasn't my best subject and I might have messed up.

[@annat4208]

I am emailing you I need little more on periodic inventory method! it's 10:57pm so you are probably finishing dinner. S...T...A...Y A.....W..A.K...E A-Okay:)

[@CPAStrengthPassion]

I will do some videos on periodic method

[@ThepurrrBlog]

I'm lost. Why is inventory a credit?

[@michaelswensen4667]

hey there! I am in Accounting 213 and have just started the Perpetual vs Periodic Inventory. Inventory is an asset account when you sell inventory, its a liability which is on the credit side. Hope this helped

[@ThepurrrBlog]

Thank you so much Michael

[@Daniel.Hernandex]

your so cool

[@CPAStrengthPassion]

+Daniel Hernandez I dunno. I'm just me

[@marielkorko1427]

Thanks for the video !!

[@CPAStrengthPassion]

+Mariel Korko your welcome

[@annashaw100]

Hi JD! Sorry, I got stuck on what the Perpetual Debit Cost of Goods Sold was - is it a Debit Asset or it sounded like you said it was a Debit Expense? Isn't an Expense "money spent in hopes of making money for your business"? Confusing... Thanks!

[@CPAStrengthPassion]

I did a poor job of explaining what Cost of Goods Sold was. The second journal entry with perpetual Inventory always confused me, so it's harder for me to try and teach. COGS is an Expense. Lets say you sold a Widget for $50 and that Widget cost $20 / The cost of the Good that i sold was $20-COGS, that will be our Expense because we spent $20 in hopes of making more $$, which we did when we sold a Widget for $50 Hopefully that helps.

[@annashaw100]

Hi again JD! It took me a couple of days to mull this one over... :-) What I came up with is that it needs to be an Expense to reflect the sell in the Income Statement? Am I on the right track? Also, would it be the same if you had to sell another Asset, for example a Property? Would the second Journal Entry be Credit Asset Property and Debit Expense Something? Sorry, I'm clearly not a professional!!! Thanks for all the time and effort you put in, you are super good at explaining stuff! :-)

[@CPAStrengthPassion]

Hi, you are on the right track with your thinking. Yes if sold another Asset, say a property, the 2nd Journal Entry would be Credit Asset- Property. Because you would be keeping up with the inventory per transaction. You would reduce the sold asset by crediting it. Please don't be sorry for trying to learn. It helps me teach, because i promise you. What you are having problems with, thousands of other people are too. Thank you for your continued support of my channel !!!

[@meljcollins]

Yes. Cost of Goods Sold is messing me up as well. I understand what it is and why it's needed, but when I think of "costs," I think "But we already paid for it, so why are we recording it as an expense only after we sell it?" Bringing inventory in is interrupting my way of thinking, but I think for now, as long as I remember the cost of the item goes to Inventory when we purchase it, then gets transferred to Cost of Goods Sold (as an expense?) when we sell it, the rest will fall into place later. Possibly lol!

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Lit

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The Brothers out chea GRINDIN' !!!!!