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here coding students this is the video lecture series for chapter number five where were continuing to deal with inventories we saw that inventories was an asset that we are buying from suppliers that we plan to resell to our customers yeah inventory or merchandise and in the previous chapter chapter 4 we treated this inventory as an asset now if you bought merchandise that you already sold then thats called or the related cost is called cost of goods sold or cost of sales here and we learned in that chapter for the calculation of that cost of goods sold thats the inventory at the beginning of the period beginning inventory this is what was unsold from the previous day the last period and in the current period were buying more merchandise to resell called purchases you got to reduce this purchases figure by any discounts the suppliers give you or any allowances the suppliers give you and if you add up these two amounts beginning inventory plus the net purchases thats called the co
