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How are the beginning balances on the inventory worksheets derived?

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How are the beginning balances on the inventory worksheets derived?

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Beginning balances are a result of transactions throughout the school year. A year-end inventory report is received from the Textbook Operations Department. The school will conduct a physical inventory of all textbooks on the campus, and report any lost, surplus and unfit textbooks. The school is billed for the losses and the corresponding textbooks are reduced from the inventory, resulting in your year-end balances. These balances are then converted to your beginning balances at the start of the new school year.

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