How do you record ending inventory in accounting?

How do you record ending inventory in accounting?

Draft the word “inventory” next to the date. Write the amount of the company’s ending inventory in the debit column of the general journal. For instance, a company with $50,000 ending inventory must debit the inventory account for $50,000.

What is the journal entry for inventory?

A journal entry for inventory is a record in your accounting ledger that helps you track your inventory transactions. Depending on the type of inventory and how much your business carries, there are different kinds of journal entries that may help you organize your financial expenses and earnings.

Where does closing inventory go on a balance sheet?

Inventory is an asset and its ending balance is reported in the current asset section of a company’s balance sheet.

Where is closing inventory shown?

Closing stock is shown on the asset side of a balance sheet.