At year end, when adjusting inventory, you debit or credit inventory. Is the other
entry made to purchases??
Thanks
entry made to purchases??
Thanks
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that depends...
Did you purchase inventory?
With cash? Credit?
DR inventory, CR cash...
DR inventory, CR accounts payable...
Or is your adjustment to increase accumulated depreciation?"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey -
Inventory is something available for sale. How can inventory be depreciated?
Perpetual method?Comment
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Simple Answer
make sure all the other entries to inventory have been made. If your question involves the final entry to recognize a gain or loss by virtue of counting the inventory, the most common entry would be:
Dr. Inventory (if there is a "gain")
Cr. Cost of Goods Sold
or...
Dr. Cost of Goods Sold
Cr. Inventory (if there is a "loss")Comment
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