 Same units of product could most likely go up but possibly could go down over time as well because of inflation if nothing else other changes as well. So that's gonna give us $22. That's where the flow assumptions are gonna come in when we talk about more complex methods in the future. And then let's say that we also purchase product number two. So I'm gonna copy this. I'm gonna put it over here and say we purchased another product number two. And we didn't have any first row here. Product number two, we're gonna say we purchased two of them and they cost $105 for a total of $210 that we're purchasing. So if we purchased this from the same vendor, we might just be paying a bill that would come through the bank feeds at 232. And that's all we would do in QuickBooks. And so we'd say, okay, I'm gonna purchase these and they cost whatever they cost. I got to pay these people $232, right? So I'm gonna go, okay, let's go into QuickBooks here and do that. So I'm gonna go to QuickBooks and it might go through the bank feeds. You might use the bank feeds but I'm gonna do an expense form here which is the form that decreases the check-in account. Let's say it's vendor one again and this happened on 415. And if these were products, I would have the two items down here that I would have to set up. But I'm not doing that. I'm just, and I'm not even tracking it. I'm not even gonna record it to inventory. I'm just gonna expense it as we purchase them. So I could put the units here. I won't even put the description. I'll just say, yeah, it was, we got to pay this guy $232. So I'm gonna say 232 and that's it. So this is gonna decrease cash and the other side is just gonna go to the cost of goods sold and we're not tracking the number of units or anything in QuickBooks. Although we most likely are in our logistical way in some way, shape, or form in Shopify because we're gonna adjust the inventory units here that are gonna be increasing as we purchase the inventory and then they will tick down as the sales are happening on the Shopify website. But Shopify or whatever service you're using is not tracking the flow assumptions oftentimes like the dollar values. And note the date should be 2025 is what I'm working in to be in the same year I was doing here. So let's save it and close it. And then if I go to the balance sheet there should be a decrease in the checking account and the other side is just simply going to the cost of goods sold. Now notice you might be thinking, well, what's happening with the revenue side of things? With the revenue side of things, I'm not focused on the revenue side of things but that would be handled with the methods we were taking a look at before most likely pulling in the information from the third-party platform using the bank feeds with a deposit, the deposits coming through or getting the more information with a journal entry or integrations. But as the revenue comes in it's not linked to the inventory and cost of goods sold because we're not using a perpetual inventory system but rather a periodic inventory type of system. Okay, so then, so that's that one. And let's, so now let's say that time passes more revenue happens and when the revenue happens the revenue would be pulled in up top and then of course your Shopify units within Shopify or whatever your online store would be going down again and whatnot. And then you would have to say that you're gonna be purchasing more units of inventory at some point. Also, let's say that we also purchased another product and let's say that we're gonna purchase product number three. So, and let's say this happens on 415. So now we're gonna add a product. I'm gonna say we're gonna sell a new type of thing and say expenses. And let's say this is gonna be another vendor, vendor number two that we're gonna say our product is and this is on 041525 as well. And so this one I'm just gonna put it once again into cost of goods sold, even though I've got a completely different vendor and a different product. And I'm gonna say that we're buying two 600 of these. Let's put the calculation just so you can see what I'm thinking on the new vendor. So the new vendor, I'm gonna copy this whole thing from the skinny. Well, let's just do this. I'll copy this over and put that right there. And let's make this a little bit smaller so we can see it on the screen. And this will be product number three. And then happens on 415. We're gonna say that we buy four units and these are more expensive stuff at 650. So four of them at 650 gets us up to 2,600. So I'm just gonna say that we're paying 2,600 to purchase these units of inventory. That's our purchase price, not the sales price. And so this is gonna do the same thing. I'm gonna save it and close it. Doesn't track the inventory or anything. It's just a decrease to the cash account, the other side going into our cost of goods sold, expensing them as we purchase them. And then we're gonna imagine time passes, our inventory goes down and whatnot when sales happen and we're saying, okay, I gotta purchase more inventory because I'm getting low on the inventory. So I'm just gonna say, let's imagine that on the next day that we purchase is gonna be on five one, we're gonna purchase six units and now they cost $23. Notice the price is going up for the same units of inventory. And then that's all we're gonna purchase at this level. So let's say on five one, that happens, we gotta pay 138. So I'm gonna say, okay, 138, boom, expense. And so I'm just gonna say this is vendor one and this happened on oh, five, oh one, two, five and cost of goods sold. And we're just gonna pay, what did I say here? 138, 138, boom, 138. And that just does the same thing, save and close. Cached based system, nice and easy. Decreases the balance sheet. The other side's going to the cost of goods sold now we purchased those in May. And then if I go back on over, we're gonna say, all right. Now time has passed again and we're gonna do one more purchase on five 15. We're gonna purchase two at 27. Notice the price is going up and then we're gonna be purchased on five 15 also, five 15 here. And I'm gonna format paint this down, five 15. We're gonna purchase three and now these costs one, one, one, price went up. That's what often happens over time even though they're the same units and we're gonna purchase more of these. Let's format paint this one down and say this happens on five 15 and we're gonna purchase three of these and again the price went up here. So now if I total that up, let's pretend we purchased these all from the same vendor now. I could just say, okay, now I'm gonna make a big purchase cause Christmas is coming or whatever. And so it's gonna cost me 2004, 12. So over here, I'm gonna say that's what I need to cover my Christmas, the Christmas sales or whatever. So I'll hit the drop down and let's just say this is all coming from vendor one again and this time we're on 05, 15, 25. Cost of goods sold, the total amount is just simply gonna be 2412. So we'll say all right, 2412. Same transaction, save it and close it. It's gonna decrease the checking account. We don't have, we're overdrawn. That's not good. We better get some sales going and then we'll run over here and there we have it on this side just recording it to cost of goods sold. Now the reason this is easy is because of course cost of goods sold will just flow into the balance sheet. It'll close out and everything. But these cost of goods sold, although we expect to have them expenses are not tying out to the same period necessarily that we actually sold the inventory. And that's why the accrual method is generally better because we would like to match out the cost of goods sold to the timeframe that we sold the inventory. But this would be the easy thing to do because when I make the inventory sales then like these units that I purchased in April, I may not be selling them until three months into the future or something like that. So now I've got this difference between when I purchased them.