DavidD66
Expert Alumni

Business & farm

You can do it a couple of ways, and they will result in the same net income, so it doesn't matter which one.  You can treat the purchase of books as inventory.  You will have a beginning balance of zero, and an ending balance of zero.  This will result in 100% of your Purchases being cost of goods sold..  Or, you can ignore inventory and list it under "Other".

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"