Iris Optical is a regional chain of optical shops. The company offers a large selection of eyeglass frames, and Iris Optical stores provide while-you-wait service. Iris Optical has launched a vigorous advertising campaign promoting its two-for-the-price-of-one frame sale.
Required
Iris Optical expects to grow rapidly and increase its level of inventory. As chief accountant of the company, you wish to install a perpetual inventory system. Write a memo to the company president to explain how the system would work.
Use the following heading for your memo:
Date: ____________________________
To: Company President
From: Chief Accountant
Subject: How a perpetual inventory system works