Solved: How should Mary Kay inventory be handled as an expense if it was purchased in July 2018 and sold back to Mary Kay for 90% of it's worth before Dec 31 2018?
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jaredskitt
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How should Mary Kay inventory be handled as an expense if it was purchased in July 2018 and sold back to Mary Kay for 90% of it's worth before Dec 31 2018?

 
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Carl
Level 15

How should Mary Kay inventory be handled as an expense if it was purchased in July 2018 and sold back to Mary Kay for 90% of it's worth before Dec 31 2018?

Handle it exactly the same way you would, if you sold it to me personally for 90% less than it's worth. Depending on your other business income/expenses, the business will probably show a loss, which is fine.

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Carl
Level 15

How should Mary Kay inventory be handled as an expense if it was purchased in July 2018 and sold back to Mary Kay for 90% of it's worth before Dec 31 2018?

Handle it exactly the same way you would, if you sold it to me personally for 90% less than it's worth. Depending on your other business income/expenses, the business will probably show a loss, which is fine.

View solution in original post

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