Inventory purchase, barter i get the inventory he gets a credit for future purchases from me.

USA Discussion in 'Technical Queries' started by Aijan, Apr 21, 2017.

  1. Aijan


    Apr 21, 2017
    Likes Received:

    let me describe the situation.

    I got surplus assets of one company, no money changed hands. Instead we agreed I would give credit to this company for future purchases from me. When I get the stuff they need.

    Would I record that as Dt Inventory
    Cr Accounts Payable ?
    Then after some time this company sends me PO to buy smth from me that costs less then the available credit.

    What entries should I use to record the sales and adjust the credit amount?
    How does Income account play here when I haven't received the money?

    Thank you,
    Aijan, Apr 21, 2017
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.