accounting for "sold" inventory

[Derek Atkins]

David,

"David Cousens" <davidcousens at bigpond.com> writes:

> Hi Jay, Michael,
>
>  
>
> Correction to previous post. My apologies, it was late in the night here
>
>  
>
> When an Item is sold  AR is debited by the sale amount and Sales Income is
> debited by the sale amount.

I suspect you mean Income is "credited"...

> Inventory is then credited by the item cost and CoGS is debited by the item
> cost 
>
> and Sales income -CoGS represents the change in equity.

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
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