Alright let's quickly discuss the difference between a merchandizing company and a manufacturing company. Alright let's start here with merchandisers, we've talked about this a little bit before merchandizing company, they're gonna have one main inventory account, right? And merchandizing companies like we said they resell goods, right? They buy stuff that's already finished and they resell it to someone else, usually the final customer. Right? So it would be like a situation of a company that buys t shirts and then resells them as T shirts already? Right? So we usually call this inventory account, we call it inventory. Excuse me, inventory. Sometimes you'll see it called merchandise inventory great. But it means the same thing. So in a merchandizing company we would see something like this X. Y. Z. Company purchases goods from its supplier for $10,000 on account. Well of course we might have talked about the periodic system, the perpetual system. Let's just say it's a perpetual system and we're just putting everything in inventory. Um so in this case we would purchase goods, right? So we're buying inventory from the supplier on account. So our entry pretty simple, like we've done before, we would debit our inventory to increase inventory and that would be $10,000 and then we would increase our accounts payable, right? We didn't pay them in cash, We gave him an Iou and that would be a credit, right liabilities go up with a credit. So this entry would be complete. This is something you've probably seen before in this class already. So we're seeing that inventory has gone up by 10,000. Our accounts payable ap went up by 10,000. Right, so our equation stays balanced here. Alright, so merchandizing company. Remember these are just resellers? This is stuff we've dealt with before. Now. Let's compare it to a manufacturing company in the coming up video, let's do it now.