G
Greg Maxey
This may be more of an accounting question but I thought someone here might
be able to answer.
When I sell something to a customer I record the income in an account called
"Bulk wholesales."
Sometimes some of the things I sell spoil or go bad. When I go back to a
store I give my customers a credit and pick up the spoiled items.
I issue the customer a credit memo for the amount of the spoiled items that
they then apply to the cost of the new items that they buy.
I then do a Journal entry to debit a "Loss, spoileage, refund" expense
account and credit my "Bulk wholesales" expense account the cost of the
spoiled items.
Is this the correct way to do this?
Thanks.
--
~~~~~~~~~~~~~~~~~~~~~~~~~~~
Greg Maxey - Word MVP
My web site http://gregmaxey.mvps.org
Word MVP web site http://word.mvps.org
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
be able to answer.
When I sell something to a customer I record the income in an account called
"Bulk wholesales."
Sometimes some of the things I sell spoil or go bad. When I go back to a
store I give my customers a credit and pick up the spoiled items.
I issue the customer a credit memo for the amount of the spoiled items that
they then apply to the cost of the new items that they buy.
I then do a Journal entry to debit a "Loss, spoileage, refund" expense
account and credit my "Bulk wholesales" expense account the cost of the
spoiled items.
Is this the correct way to do this?
Thanks.
--
~~~~~~~~~~~~~~~~~~~~~~~~~~~
Greg Maxey - Word MVP
My web site http://gregmaxey.mvps.org
Word MVP web site http://word.mvps.org
~~~~~~~~~~~~~~~~~~~~~~~~~~~~