[GNC] cost of goods sold, unsold inventory

[Jamie]

thank you, that makes much more sense than the method I was 
contemplating.....


------ Original Message ------
>From "Murugan Muruganandam" <m.muruganandam at hotmail.com>
To "gnucash-user at gnucash.org" <gnucash-user at gnucash.org>; "Jamie 
Tolbert" <jtolbert at zoominternet.net>
Date 5/21/2023 7:47:43 PM
Subject Re: [GNC] cost of goods sold, unsold inventory

>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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