 and when I sell them. And that can be difficult for decision-making purposes. And notice that accounting is principally based on decision-making purposes. But on the plus side, this is the easy thing to do. But at the end of the year, we're gonna have to file the taxes. And just remember the income would still be being populated. I'm not gonna populate the income here because we looked at that last time, but it would be being populated separately using the methods that we talked about on the inventory side of things. Pulling in from the bank feeds or something like that. So now at the end of the year, we're gonna say, well, I need ending inventory for my, if I'm a sole proprietor or for whatever tax return I'm doing generally to calculate my costs to good sold calculation. So one way you can do this is then at the end of the year, you could try to say, okay, let me think about how many units I have left. And the units you have left, you would kind of know because you might be tracking them, of course, in your Shopify for the logistical purposes, what you don't know typically is gonna be what should be the cost of those units of inventory. But if we assume that we're just gonna use the last purchase price, I can say, okay, as of, let's pretend the end of the year is 531, even though it usually would be a 1231 year end, but let's just do it at the end of the 531 and say, I have to have an ending inventory at this point in time. Well, I could say, well, how many units do I have left? And let's imagine that we have four units left of this product. And then let's imagine we have five of these, we didn't even sell any of these. And then let's imagine that we had two left of this product. So if that's the case, then we have to value those amounts. Now we can kind of basically just assume that the last purchase price is the cost of the inventory. So here, notice the inventory was worth 20. We bought it for 20, 22, 23, and then 27. The easiest assumption would be, I'm just gonna use the 27. Now this is kind of trying to back into a first in, first out method because my assumption is that I sold these cheaper ones already and the more expensive ones I bought later, I still have. However, it's not perfect because really if I have four units left and I only bought two at 27 and the other two were bought at $6, right? So if I was really to back into it, I should have two at 27 and two at six. But we'll talk about a flow assumptions later. This is just the easiest kind of approximation that you can do for this one timeframe, which is kind of approximating a back into the first in, first out method. So let's say on here, we're just gonna use the 111, the last purchase price, right? So this is gonna be this times this and then here we're gonna say that this is gonna be 675, which is this times that. That would be the easiest thing to do. And then I can say, the total then is gonna be product number one, two, and three. So that would be then my ending inventory that I would need. So if I think about what I have in my books, I can say that my cost of goods sold on this side is overstated as of this point in time by the 2013 because this is the amount of inventory in dollars that we are imagining is still on the books, right? So then I can go over here and make a journal entry periodically and say, okay, let's just fix that. I'll just make an adjustment as of that timeframe, going back on over and say plus button. And this time I'll just make a journal entry. And I'm gonna say as of the end of the period, which we are imagining 05, 3125, we will say it's gonna be a deposit to inventory and for the amount of two, zero, one, three. Two, zero, one, three. And then the other side is gonna go to cost of goods sold. Cost of goods sold, two, zero, one, three, boom. Increases inventory, decreases cost of goods sold. Let's save and close it. And then if I go to my balance sheet now, as of 531, we've got our, there it is. There's our inventory number. I thought it wasn't there. There's our inventory number. So now we have it on the balance sheet. And then on the profit and loss, we've reduced the cost of goods sold by the amount that we think is not sold based on our backing in to the inventory calculation. So there's our journal entry. If I go back on up, exit out of that. And there we have it. Now the problem with this, of course, is that this is only making like the profit and loss correct as of the point in time, as of the end of the year. And that means that our cost, see, I didn't make an adjustment as of the end of April. We could do this on a monthly basis, for example, and do an adjustment similar to this on a monthly basis. But if we just do the easiest thing and we do it at the end of the year, then this might get us by for tax purposes, but it's not gonna give us the best information because we have these timing differences in terms of the cost of goods sold when it's recorded to the cost of goods sold and when it's related to the sales. So that's, and we'll get more into the flow assumptions to think about that conceptually later. Notice that if for taxes then, when you're doing this for taxes, usually the second half or page of the schedule C has a cost of goods sold formula. So the basic cost of goods sold formula has a beginning inventory, beginning inventory. And then that should match what you had on last year's beginning inventory plus purchases, less, and that's gonna be, will the amount available for sale? Let's put it in amounts.