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Siberyachka
Returning Member

Ending Balance for COGS when business is sold

What do I put as an ending balance for Inventory if I sold y business in 2019. 

I have Beginning Balance 100K+Cost of Purchase 50K

Should I set my ending balance to Zero since I sold my business with inventory or should I include what's left in inventory balance before I sold my business?

 

3 Replies
TomYoung
Level 13

Ending Balance for COGS when business is sold

You allocate some amount of sale proceeds to the inventory you sold and use $0 as your ending COGS.

Siberyachka
Returning Member

Ending Balance for COGS when business is sold

@TomYoung would you guide me where would I put inventory allocation related to the sale?

TomYoung
Level 13

Ending Balance for COGS when business is sold

The amount allocated to the sale of inventory would included in your "Gross receipts or sales" line,  (I'm assuming Schedule C here), in the same line with all your "regular" sales before the sale of the business.

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