COGS and Current Assets

[Derek Atkins]

Hi,

error404llc <error404llc at gmail.com> writes:

> Hi, Just wanna double check I'm doing this right, so I sell computers.  
>
> When I buy a new laptop to sell on lets say on a credit card for 25, I add
> the 25 value into currentassets inventory account, and then transfer it to
> credit card liabilities.  then I sell the laptop.  I then decrease current
> assets and increase my COGs account by 25.  and then obviously record the
> sale in income for the full selling price.
>
> Am I doing this right?  I don't record inventory in gnucash just use an
> excel spreadsheet for that, since I usually only have 10-15 computers in my
> inventory at any given time.

IANAA but this looks right to me.

> Thanks so much.

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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