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?
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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.
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