Consignment inventory is one of the marketing methods used to attract customers. One variation of consignment is when a seller delivers goods to a customer (buyer) but retains the title to the goods until the buyer uses the goods. In this article we explore accounting for this type of consignment arrangement.

Budgeting is important for any organization. Preparing a master budget requires preparing financial budgets as well as an operating budget, which in turn consists of many components such as sales budget, production budget, costs of goods sold budget, etc. In this article we will learn to prepare a simple production budget, which is an important component of the operating budget. Production budget is used to prepare other components of the operating budget, including direct materials purchases budget, direct labor budget, etc.

Learn about accounting for obsolete inventory with examples of obsolescence reserve journal entries.

Accounting guide about consigned goods; definitions of consignment, consignee, consignor; examples of consignment journal entries; consignment benefits, risks and controls.

Explanation of accounting for customer returns, sales and return allowances, purchase allowances, cash refunds and store credits.

Physical inventory and purposes; three phases: planning and preparation, execution, and analysis of results; methods of conducting physical inventory such as bar-code readers, count cards, and count sheets.