when i donate a product in inventory should i receive it in as i normally would (adding cost to the system)?

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when i donate a product in inventory should i receive it in as i normally would (adding cost to the system)?

then I should do an inventory adjustment for the amount of inventory we donate. then at month end do a journal entry debiting charitable contributions expense and crediting the cost of the inventory.

2007-04-05 06:15:59 · 3 answers · asked by Sarah B 1 in Business & Finance ➔ Small Business

3 answers

Yes, that way you have a nice paper trail should you ever be audited.

2007-04-05 06:19:10 · answer #1 · answered by raven44012 4 · 0⤊ 0⤋

Yes.
You receive it, then charge it out to "Charity & Contributions" in your expenses.

2007-04-05 13:25:33 · answer #2 · answered by ed 7 · 0⤊ 0⤋

yes do it like that

2007-04-05 13:18:37 · answer #3 · answered by Jimena S 3 · 0⤊ 0⤋