I need help in this assignment.

Hi students:

For this first writing assignment, we would like to hear what you have taken from the semester so far by having you explain some of the concepts

Your email will be graded on the following criteria:

1.Have you demonstrated an understanding of the accounting concept being discussed?

2.Have you explained yourself clearly and succinctly? (meaning, you answered the question without a lot of wasted words and repetition)

3.Have you used correct accounting terminology?

4.Is your email structured correctly and completely?

5.Have you used professional grammar, spelling and punctuation?

March 10, 2021

To:"Your Name," Senior Accounting Analyst

From: Jeffrey

Subject:Inventory Analysis

Hi "Your Name,"

I hope you have been enjoying your position as my Senior Accounting Analyst these last few months.As you know, we are a small boutique clothing store: we can't compete with Macy's or Amazon, but we carry unique brands and items that appeal to younger buyers: things they can't find at the big stores.

I've been looking at our financial statements for last year, and I'm confused about a few things.I'm hoping you can help me to understand some concepts - let me tell you where I'm having trouble with the accounting jargon, and hopefully you can explain these things in plain English!

I recall that you have said it's important to review our inventory carefully at the end of each period.You said that getting the inventory amount wrong will impact our income statement for that period, but how can that be?Inventory is an asset, on the balance sheet, right?So how can an error in valuing inventory affect the income statement?

Also, you mentioned that we need to be ready for customers who might return merchandise.I don't understand why that needs to be done. Can you explain?You said that you will make an adjustment at the end of the period and will reduce our Sales number?And, you will adjust an account called "Customer Refunds Payable?" I don't understand why we would reduce our Sales amount for merchandise returns that haven't even happened yet.Can you please walk me through the reasons why it should be done like that?

With inventory, I know that we value our inventory using the "FIFO method" but I have no idea what "FIFO" means.Can you explain what the FIFO method is, and how it affects our financial statements?Is it the best method for me to be using for my business?

Finally, you mentioned that we could improve our controls over cash.I like my old-fashioned cash register at the front of the store for keeping track of sales, and my long-time accountant, Ima Cheatin, says that he can manage the payroll and the bank statements without your help.What do you think?

Thanks for your help,

Jeffrey