Delivery Bags Accounting treatment


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Feb 10, 2021
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Pakistan
Hi

We are online delivery service business, We have bought Delivery bags in bulk quantity, each delivery bag cost $22 each, and its expected economic life is 1 year, we will hire riders. These delivery bags will be given to them for free of cost for the first time, and if delivery bag is damage then again issuing them delivery bag, we will charge them delivery bag amount.
So what will be the accounting treatment, should I consider it asset, if asset then what will be the depreciation rate,
or I should expense out.
 
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Joined
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OK thanks, and what will be entry when we charge from rider for the delivery bag
 
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Since I am a regular customer of Aliexpress and not only Aliexpress, it's been years since I mainly switched to online shopping. I try to keep track of all parcels, as long as they are not some useless trinket.
 

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