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posted Apr 17, 2023 6:01:31 AM

I own a business (Home theatre installation) and we also sell TVs to our clients. I need to write these off. Do I list these as "Supplies" in business expense? Thank you

I own a business (Home theatre installation) and we also sell TVs to our clients. I need to write these off. Do I list these as "Supplies" in business expense? It says under supplies are items I use regularly to do my work that last less than one year. Not sure where I should expense these equipments we sell.  Thank you

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1 Replies
Expert Alumni
Apr 17, 2023 6:11:23 AM

You should not expense the TV sets that you sell to your clients. You should consider as items of inventory and count them as Cost of Goods sold when you sell them.

 

When you buy in the TVs, count them as Purchases.

 

Cost of Goods sold = Opening Inventory + Purchases - Closing inventory.