The document provides instructions for taking a physical inventory count and updating inventory records. It explains that an inventory record should be used to record the stock number, count, unit price, and total cost for each item during a physical inventory. It also notes that a stock record is used to track purchase information, sales information, and the new balance on hand for each item. Finally, it defines key terms related to inventory such as periodic inventory, perpetual inventory, inventory record, stock record, and stock ledger.
