Free Sellable goods

[Prem Mohandas]

Hi All,
My supplier is paying my target incentive in the form of free sellable goods worth the value of my incentive receivable.
The question i have is how do I post this in my income statement and balance sheet?
Please advice
Regards
Prem

 

[kirby]

DR Sellable Goods (balance sheet asset)
CR Income from incentive (revenue account)
in the amount of the value of the goods

 

[Prem Mohandas]

Thank you.
When prepping the income statement, should this come under trading account as incentive?
since the goods are added to the inventory, should i give the cost of the original goods in to the inventory in order for it to take effect on the closing stock? please advice.
Thank you

 

[kirby]

Yes and yes.

 

[Asha Kanta Sharma]

The Sellable Goods received from supplier as an incentive will have to be shown as per the value of rate per pc per SKU will have to be shown in inventory.