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  • Nick
    Junior Member
    • Jan 2013
    • 1
    #1

    Option

    Client purchased an option from a supplier. Option gives him the right to purchase mdse at a reduced cost. How do handle the cost of the option.
    Thanks for any help.
    Tags: None
    • Burke
      Senior Member
      • Jan 2008
      • 7068
      #2
      Option is added to his cost basis when he purchases merchandise. I assume you are talking about merchandise for resale & as such will be held in inventory? COGS.

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