JustAnswer
>
Finance
Ask A Question
|
Register
|
Login
|
Help
Finance
Ask a Finance Question, Get an Answer ASAP!
Have your own Finance question?
5 Financial Professionals are Online Now
characters left:
Not a Finance Question?
Related Finance Topics:
Line
,
Credit
,
Company
,
Information
,
Expense
,
Deduct
,
Non Profit Organization
,
Cost Goods
,
Cost Goods Sold
Question
How do expense a gift that comes from an inventory item? We are a non profit organization and from time to time will giveaway some of our T Shirts etc... as gifts and we would like to know how to account for that gift. Would it be an expense to our gift budget line item or would it be expensed or a loss to the T Shirt inventory account.
Submitted: 26 days and 6 hours ago.
Category: Finance
Value: $15
Status: CLOSED
+
Read More
Posted by
JK_CPA
26 days and 6 hours ago.
Answer
Hello,
Thanks for your question.
I'm assuming here that you do sell some T-shirts. You would deduct the cost of the item from your T-shirt inventory account and add it to the appropriate expense account (gift expense, advertising expense, etc.)
The journal entry would look something like this:
Debit: Advertising expense $3.00
Credit: T-shirt inventory $3.00
Hope this helps.
Sincerely,
26 days and 3 hours ago.
Reply
Sorry I did not respond sooner had to run out for a while. I understand what you are saying but how would you take that information and enter it into Quickbooks. For example would you use a sales receipt to credit the T shirt inventory and then what would you use to debit the expense account and would you use the cost of goods sold or would you use the sales price. Thanks
25 days and 17 hours ago.
Reply
Did you get my follow up question?
Accepted Answer
Yes, I got it. Had to go to sleep last night. :)
You might not have a sales rceipt because you did not actualy sell the item. You could use a sales receipt or just a company memo stating how many t-shirts were given away, the date, etc. You would not use "Cost of Goods Sold" becuase you gave it away. You would use the cost to your organization for the t-shirt. If you bought the T-shirt from your supplier for $3.00 a t-shirt, then you would just use $3 to credit your inventory asset account and debit the expense account. If you have to have something on paper for each journal enrty, then just create a company memo and/or use a sales receipt.
Hope this helps,
Sincerely,
Expert:
JK_CPA
Pos. Feedback:
100.0 %
Accepts:
Answered:
10/28/2009
Certified Public Accountant (CPA)
with 5 years Accounting and 18 years tax experience.
+
Read More
Related Finance Questions
Annie Kavitha please Do the Valuation using Free Cash Flows
Is Morningstar the primary means of "advertising" that an of...
will I get a pay out for a hand contusion even if I dont get
hi i mam left me her house in a will last year,My brother is
My father passed away recently; had a revocable trust; my ha...
Are immediate annuities considered a liquid asset by banks
I need to get a secured loan out on my car. I own the car,
I have been a licensed childcare provider in the State of Mi...