The initial opening inventory for a retail store are items that are owned by the owner. He does not know what he paid for the items when he purchased them. So what should I enter for the initial inventory value. He wants me to add each item. Not sure how much to put in as initial inventory value or should I just enter as the actual value of the item even though that is the sales price?
USA Initial Inventory Question
- Thread starter mcikes
- Start date
Large dollar items or small dollar items? What’s the average value? Unique or you could find the stuff on Amazon? Can you give a general description so I don’t have to feel like this is “pulling teeth” here?
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value varies, it is primarily video games and collectible stuff like that. nothing more expensive than $150 though with most being in the $10-$20 range. Nothing that unique and in fact has been selling on ebay to raise capital for a physical store. For example: he has a game that is "worth" $15 (value can be acquired from a website that tracks ebay sales), he sells it for $15. Would I enter the inventory item as owners equity and $15 since thats what it is worth even though he sold it for $15? Also, each item is unique, very little duplicates of the same item and therefore each item has a different value.
The journal entry you proposed
DR Inventory $15
CR Owner's Equity <$15>
is correct.
To get prices, use the prices that a seller (like gamespot) wants to BUY from someone at. Then when you sell at market there will be a profit. Try to copy those prices you look up to PDF as backup for your inventory values. Give those PDF's a filename that will lead you to the inventory item easily.
DR Inventory $15
CR Owner's Equity <$15>
is correct.
To get prices, use the prices that a seller (like gamespot) wants to BUY from someone at. Then when you sell at market there will be a profit. Try to copy those prices you look up to PDF as backup for your inventory values. Give those PDF's a filename that will lead you to the inventory item easily.