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In this video youll find out what Inventory means and how to account for it in a Merchandising Business. [Music] Hey there Im James youre watching Accounting Stuff and in todays video were going to tackle a topic that I get asked about all the time Inventory. Not gonna lie this is a big one. So Im putting together a whole Inventory Mini-Series to make sure that weve covered all the bases. This is video number one and Ill be uploading the rest of the playlist over the next few weeks. So hit subscribe if youd like to see those. Today I want to focus on Inventory in a Merchandising Business. Specifically how Inventory in the Balance Sheet interacts with the Cost of Goods Sold and Revenue accounts in the Income Statement. This can be a bit confusing so I recommend you watch this video all the way through to the end so you get the complete picture. There are two main types of business that hold Inventory Manufacturing Businesses and Merchandising Businesses. Manufacturing Business