[GNC] Another "multi-account" logical issue - any advice on how to register this?

[Michael or Penny Novack]

> I would absolutely record shipping as an expense, not an asset. The
> asset has value after you receive it; the shipping is "used up" the
> moment the package arrives. Only things that still have value should be
> listed in Assets.

No ..... if I am in the business of buying and selling widgets I well 
have batches of "widgets" under "inventory". Each batch will have a cost 
associated with it, and that cost would include getting the widgets to 
me. It's not an expense YET.

When I sell a batch of widgets, there will be income "sales" and expense 
"cost of goods sold". The cost of shipping to me was part of cost of 
goods sold.

If this seems strange to you, consider an inventory of firewood. What 
you paid for it as "stumpage" would be only a very small fraction of the 
cost << mainly costs of felling, cutting to log length and limbing, 
skidding to landing, haulage by truck, bucking, and splitting. >> THAT 
(total) would be my inventory cost per cord. These cots were not "used 
up" but converted the wood into something you could sell.

Well the cost shipping of inventory to you similarly hasn't been"used 
up". It "converted" that inventory from something not available for you 
to sell into something you could sell.

Michael D Novack