[GNC] cost of goods sold, unsold inventory

[Murugan Muruganandam]

Inventory accounting can be done in multiple stages depending on your purchase, processing and selling.  i presume your example is direct purchase of finished product and selling at a margin on cash. if so

Inventory purchase
Asset: Inventory: Product:   Dr 1000
Asset: Current asset: Bank: Cr 1000

Sales

Asset: Current Asset: Bank: Dr 840
Asset: Inventory: Product:  Cr  600
Income: Profit from sales:  Cr  240


so your inventory account will be Dr 400 (cost of your available 4 units)

if you have credit transactions, then you need to use Account payable and Account receivable






Saludos Cordiales


Murugan

________________________________
From: gnucash-user <gnucash-user-bounces+m.muruganandam=hotmail.com at gnucash.org> on behalf of Jamie Tolbert <jtolbert at zoominternet.net>
Sent: Sunday, May 21, 2023 7:26 PM
To: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Subject: [GNC] cost of goods sold, unsold inventory

I am slowly wrapping my head around things, kinda stuck on a question
about accounting for unsold inventory. Say I bought 10 widgets, for 100
each, my cost of good sold is 1000; I sold 6 for 140 each. My sales is
840, but my cost of good sold is only 600, not 1000, How do I account
for the 4 remaining in inventory.
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