This is my first year working as a Thirty-One Gifts direct sales home party consultant. I have purchased quite a few of their products to show at home parties and vendor events. I don't know if I record them as Inventory or Promotional/Samples. Also, what if I sell a product as "cash and carry" or give a product as a hostess gift or party prize?
Thank you for your assistance.
Products purchased for resale go to inventory.
So if you buy products that are used for promotions these are expensed when purchased.
I am not sure what " cash and carry" means.
Inventory and Cost of Goods Sold (COGS) is set up like this.
Beginning inventory $100 Goods on hand 1/1/2016
Purchases $2,000 items purchased for resale to customers
Ending inventory $300 what was on hand on 12/31/2016.
COGS $1,800 gets applied in TurboTax against the sales.
So if you buy something for giveaways and promotions, it does not go under purchases but it is a direct expense item.
Products purchased for resale go to inventory.
So if you buy products that are used for promotions these are expensed when purchased.
I am not sure what " cash and carry" means.
Inventory and Cost of Goods Sold (COGS) is set up like this.
Beginning inventory $100 Goods on hand 1/1/2016
Purchases $2,000 items purchased for resale to customers
Ending inventory $300 what was on hand on 12/31/2016.
COGS $1,800 gets applied in TurboTax against the sales.
So if you buy something for giveaways and promotions, it does not go under purchases but it is a direct expense item.