I am a new bookkeeper for a new franchise business and have difficulty calculating inventory value for the year-end. Fact: 1. The franchisee ( I work for) paid $xxx inventory deposit (that is fully refundable when the Franchise Contract ends) to the franchisor before franchisee started operating. 2. Periodically the franchisee pays the royalty with some percentage of gross sales. The fees include purchase to fill up the shelves of the store. There are no indication of itemized nor total costs of purchase. 3. The franchisee did not have physical inventory count at year-end. How do I calculate the inventory value at year- end? I hope it is possible that you can help me. I really appreciate your time spent here!
