I am an FFL dealer and wanted to purchase a firearm for my personal use with my personal funds.To purchase at the wholesale price afforded to dealers, the business had to purchase it. I purchased it without having to pay sales tax and decided that I would let the business pay the state sales tax(use tax in this case). How would this be entered into my account? Thanks
This isn’t a Manager issue, it is a question about general accounting principles. The answer depends on your form of organization: corporation, partnership, or sole proprietorship. Essentially, you have made a draw from the company. This has to be reflected as a shareholder loan, partner’s capital account reduction, or owner’s draw, respectively. I would probably be much cleaner to simply buy the product from the company and record it like a normal sale.
You’ve probably also run afoul of sales tax law in your state. If it is like most, a wholesale merchant cannot legally pay sales or use tax for an end user. The approach described above resolves that issue, too.
By the way, you may notice I’ve split your unrelated question into a new topic.
Thanks