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Update* Inventory on hand 12/31* Purchases posted to COGS account

At the end of 2018, I had to value inventory on hand and do a journal entry for our Inventory Retail Sales. Our company I believe will do a JE that debits Inventory:Retail Sales for that value and credits COGS for the categories that fall under Retail Sales (ie. COGS Bait, COGS Cigarettes, etc). All of our purchases always go to a COGS account.

I have the inventory on hand for all of the different Retail Sales. I just wanted to make sure that on  12/31/2018 I debit Inventory:Retail Sales and credit cogs bait, cogs cigarettes etc.

 

For example:

Inventory Retail Sales     $4,000

COGS Bait                                     $3,000

COGS Cigarettes                        $1,000

 

 

Also, they could not get me the diesel fuel on hand at 12/31 because the meter reading part was broken. Can I take the diesel inventory number that was purchased in December, subtract the amount of diesel sold and get a number for my 12/31 diesel entry?

Thank you for your assistance and guidance! 

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Re: Update* Inventory on hand 12/31* Purchases posted to COGS account


@KateH wrote:

At the end of 2018, I had to value inventory on hand and do a journal entry for our Inventory Retail Sales. Our company I believe will do a JE that debits Inventory:Retail Sales for that value and credits COGS for the categories that fall under Retail Sales (ie. COGS Bait, COGS Cigarettes, etc). All of our purchases always go to a COGS account.

I have the inventory on hand for all of the different Retail Sales. I just wanted to make sure that on  12/31/2018 I debit Inventory:Retail Sales and credit cogs bait, cogs cigarettes etc.

 

For example:

Inventory Retail Sales     $4,000

COGS Bait                                     $3,000

COGS Cigarettes                        $1,000

 

Yes that works, but on the first of the year you need to move those values back to COGS so it will count for the new year.  Assuming the account Retail Sales is an asset account as it should be.

 

 

Also, they could not get me the diesel fuel on hand at 12/31 because the meter reading part was broken. Can I take the diesel inventory number that was purchased in December, subtract the amount of diesel sold and get a number for my 12/31 diesel entry?

Thank you for your assistance and guidance! 

 

I would guesstimate the amount of diesel sold based on previous months, or if seasonal on the 2017 number for dec sales