46 BULLETIN 1044, U. S. DEPARTMENT OF AGRICULTUEE. 



would give $2.T2, which should be entered under " Change in stock 

 control " in the " credit " column. The reason for this is that the 136 

 pounds had been charged in at 7 cents per pound but are now to be 

 sold at 5 cents per pound. Therefore the stock-control merchandise 

 account, in order that the latter may correspond with the sales ac- 

 count, should be credited with this difference of $2.72. 



At the end of the period the totals of the debit and credit columns 

 should be added and subtracted, respectively, as indicated in Form 6 

 ("Mark-uiDs" and "Mark-downs"). These figures are valuable in 

 that they show the trend of the market as well as adjust the mer- 

 chandise account of the stock-control operation to correspond with 

 the sales. 



That price reductions for special -sale purposes may be similarly 

 taken care of. Form 3, " Stock Control Adjustment — B," is recom- 

 mended. This form should be used in connection with special sales 

 for advertising purposes and not for special prices given because of 

 " good buys," competitions, etc. The first five columns are similar to 

 those of Form 2, except for the heading of the fifth column, which 

 is " Special " instead of " New " ; but the entries in this column would 

 be similar in either form. As these special sales are for a short dura- 

 tion, usually one day, and are not intended as permanent, it is neces- 

 sary to take an inventory at the beginning and ending of the sale in 

 order to determine the number of articles sold at that special price. 

 This inventory should be taken at the time the price is changed on 

 the articles themselves. , If the sale is for one day only, it might be 

 necessary to take inventory of only those articles on the shelves or 

 display tables. In this case it would be necessary to keep an accurate 

 record of the number of articles taken from the stock room during 

 the day of sale for the purpose of replenishing the shelves. 



The number of articles on hand at the beginning of the sale plus 

 the number received or placed on the shelves during the sale, less the 

 number on hand at the end, would represent the niunber sold during 

 the sale, and should be entered in the column " Quantity sold." The 

 difference in j)rice per unit Avould be entered under " Mark-downs," 

 and this, multiplied by the quantity sold, would be the amount to be 

 credited to " Stock control." From the nature of the sales, there 

 would be no " Mark-up " ; therefore the columns " Up " and " Debit " 

 on Form 2 are not necessary in this form. The total of the credits 

 to " Stock control " should be subtracted as indicated on Form 6. 



As with Form 2, the information obtained from this record is of 

 value aside from that of its use in connection with the adjustment of 

 purchases at the retail price. It shows just how much money has 

 been given away, because of reduced prices, for advertising purposes. 

 In a great many cases this 'amount is far in excess of what it is 

 believed to be. Whether or not this loss should be charged as a cost 



