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Beginning inventory, purchases, and sales data for widgets are as follows:
Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using FIFO.
Continuation Statement
A statement that, if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued in the same manner indefinitely.
Perfected
In legal terms, refers to a secured interest in a piece of property that has been properly filed or registered, ensuring priority over claims from other creditors.
Financing Statement
A document filed by a secured creditor to give public notice of their security interest in a debtor's personal property.
Note
A brief record of facts, topics, or thoughts written down as an aid to memory.
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