USA Nonprofit Accounting - purchase of groceries not for sale


PAN

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Let’s say that Meals on Wheels organization purchased groceries for $1,950 not for sale but to feed the hungry.
The organization will continue to buy groceries throughout the year.
Purchase:
Rice $1,000
Beans $500
Pasta $300
Oil $150
-------------
Total $1,950

Can someone please help?
Can some please tell me how to record these transactions?

Thank you
 
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BIG E

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Program Services Expense - But if you keep perpetual inventory of each type of food, you post a DR to the appropriate inventory item, then when taken out of inventory, DR. Program Service Expense, CR Specific Food item.
 
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PAN

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Thank you so much, I really appreciate it.
 

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