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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 759
Experience:  Certified Public Accountant
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I have a client whom uses quickbooks online. She does not

Customer Question

I have a client whom uses quickbooks online. She does not utilize inventory. When she makes her sales they are entered has deposits and are applied to the sales account.. When she buys her product that goes into the cogs product account. My question what type of journal entries do i make to adjust her inventory on a yearly basis. Once that is resolved at the end of 2016 she will set up inventory using quickbooks
Submitted: 2 months ago.
Category: Finance
Expert:  Mark Taylor replied 2 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. The journal entry that needs to be make is to reduce cost of goods sold and capitalize inventory. Let's assume that the amount of inventory at year end was $10,000.

Inventory $10,000 (debit)

Cost of Goods Sold $10,000 (credit)

Customer: replied 2 months ago.
will work on this tomorrow
Expert:  Mark Taylor replied 2 months ago.

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