@Mabaega @Tut
Good morning and sorry to bother you both. Please how do I record Inventory purchases that cost zero due to those inventory been paid for from my supplier’s bonus account (i.e. bonus earned from previous months sales targets achieved) as these inventory when sold, the sales price is recognized as 100% income.
Thanks
If the supplier issues a sales invoice, we should use a Purchase Invoice according to the invoice you received. If there is no invoice, you can record it via journal entries as Bonus Income according to the price stated.
yes and no, the Manager uses the average cost method, the cost of goods sold will be the total cost divided by the total quantity when the sale occurs.
You should issue a receipt against the inventory items with the number of items at 0 cost. This will lower the value of your inventory.
If you do not reduce the sales price then you increase the margin. The revenue is always taxable.
@Systreame_Nigeria, your post amd responses to it were moved to this new topic. Please do not divert topics with unrelated issues. Your post had nothing to do with fixed assets or depreciation.