Hi there,
I have a Schedule C sole proprietor business with a web shop.
Let's say I sell a $500 music instrument & receive payment - then another business fulfills the order and I pay them $400. It's drop-shipped - They have inventory, but I never touch the goods.
Is it correct for me to:
- Report $500 income
- Deduct $400 expense
What category should this expense go in? "Drop-shipped musical instruments"... Something generic like "Other" or "Supplies"?
Thanks,
-Daniel
