02:34
Faizan
Conducting a physical inventory of the merchandise in a store or shop should result in figures that are very close to the inventory as recorded on page two of your last IRS 1040, Schedule C form. In part III you must list the inventory for the beginning of the year. Additional purchases are added and deductions are made for materials and supplies. Line 41 of the Schedule C gives you the end-of-the-year inventory figure, which is the amount you will start with the next year.
Get the amount of your ending inventory from your most recently filed Schedule C. This figure is in Part III, on page 2, line number 35.
Add the cost of any new purchases you have made since the Schedule C was filed to the ending inventory figure.
Subtract the dollar amount of any items that were taken out of inventory for personal use since the Schedule C was done. The ending inventory amount plus the new purchases and minus the items that were personally used results in the current inventory figure.
Compare this figure to your last end-of-the-year physical inventory count. The result should be close to the current inventory amount you just calculated.
Get the amount of your ending inventory from your most recently filed Schedule C. This figure is in Part III, on page 2, line number 35.
Add the cost of any new purchases you have made since the Schedule C was filed to the ending inventory figure.
Subtract the dollar amount of any items that were taken out of inventory for personal use since the Schedule C was done. The ending inventory amount plus the new purchases and minus the items that were personally used results in the current inventory figure.
Compare this figure to your last end-of-the-year physical inventory count. The result should be close to the current inventory amount you just calculated.
Posted in: Products & Brands
