We have sold the business assets as part of a sale and looking for guidance on how to record everything as a result, ideally using an invoice with line items to account for each element of the assets sold.
In this case, the cleanest thing to do is to create an invoice. On the invoice list all of the things included in the sale, which will reduce those inventory balances to zero QOH (or, it should if your inventory balances were correct.)
Then, also on the invoice, add a discount type line item to reduce the invoice to the amount of the sale.
Then, also on the invoice create and add a special Other Charge item using an Asset account where you'll track the note receivable. Enter a negative amount to reduce the invoice to 0.00.
Then, track payments received on this note as bank Deposits that use the note account in the detail area of the deposit; these will reduce the note's balance over time.
I would create an inventory adjustment and write everything off to zero, and use a "Income from liquidation of inventory" income account, or sub account to "Income from Sale of Business". Then use that same account as the credit in the journal entry where you record the liquidation, for the actual amount you sold the inventory for
"How do you account for the good will aspect? "
Goodwill is an account that is used by a buyer of a business not a seller. The excess paid over book value is simply profit on your P&L
"How do I account for remaining payments (all principle, no interest) the buyer is to pay over the course of a year?"
Create a journal entry: debit "Receivable from buyer of business", credit "Income from Sale of Business"
The above assumes you file tax on accrual basis. If cash basis, use an Invoice rather
We're cash basis, so I've created an invoice and listed each inventory item and quantity to draw them down to zero.
I then added a discount line to reduce the price of the inventory portion down according to the sale agreement.
Now, as far as goodwill...I need to account for it somehow on the invoice. Plus it is not to be taxed at regular income but as long term capital gains. So I'm still confused on how to account for this portion.