USA Refund treated as income?

Joined
Oct 16, 2023
Messages
2
Reaction score
0
Country
United States
In November 2021, we made a purchase of $50,000 for inventory. The vendor wasn’t able to fulfill the order, and refunded us back the $50,000 in Feb 2022.
My understanding is since we treated the $50,000 in 2021 as a purchase for inventory, it was a write off for tax purposes, therefore we will have to treat the refund of the $50,000 in 2022 as income. Am I correct here?
I just want to make sure we aren’t missing something here.
 

BIG E

VIP Member
Joined
Dec 19, 2020
Messages
299
Reaction score
41
Country
United States
How did you treat the $ 50,000 in 2021? Did you include it in ending inventory on the balance sheet-or did you expense it out as a Cost of Goods Sold?
 

BIG E

VIP Member
Joined
Dec 19, 2020
Messages
299
Reaction score
41
Country
United States
Then you should pick up the refund as income.
 

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. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,646
Messages
27,602
Members
21,419
Latest member
dmcivv

Latest Threads

Top