Home Outfitters is a mid-sized retailer in Canada. The kitchen appliances department of Home Outfitters purchases small appliances such as coffee makers and toasters from many well-known manufacturers. Home Outfitters uses a sophisticated perpetual inventory system.
Required
You are the manager of a Home Outfitters store. Write a memo to a new employee in the kitchen appliances department that explains how the company accounts for the purchase and sale of merchandise inventory.
Use the following heading for your memo:
DATE: _____________
TO: New employee
FROM: Store Manager
SUBJECT: Home Outfitters's accounting system for inventories