Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowWhat are the entries for selling a fixed asset to a vendor in exchange credit on future goods and services (freight)?
Thanks,
Julien
Solved! Go to Solution.
You will need to create a journal entry to remove the asset, close out the accumulated depreciation taken, record the A/P vendor credit (debit entry in QB), and book the difference to gain/loss. For example, let's assume you had a fixed asset with an original cost of $10K, you took $5K in depreciation and you sold it to the vendor for $7.5K. The journal entry to record that is:
Debit | Credit | |
Accumulated Depreciation (to close the amount taken on fixed asset) | 5,000 | |
Accounts Payable (vendor credit to be applied to future bills) | 7,500 | |
Fixed Asset (to close) | 10,000 | |
Gain on sale of fixed asset - other income to balance (debit if loss, credit if gain) | 2,500 |
You will need to create a journal entry to remove the asset, close out the accumulated depreciation taken, record the A/P vendor credit (debit entry in QB), and book the difference to gain/loss. For example, let's assume you had a fixed asset with an original cost of $10K, you took $5K in depreciation and you sold it to the vendor for $7.5K. The journal entry to record that is:
Debit | Credit | |
Accumulated Depreciation (to close the amount taken on fixed asset) | 5,000 | |
Accounts Payable (vendor credit to be applied to future bills) | 7,500 | |
Fixed Asset (to close) | 10,000 | |
Gain on sale of fixed asset - other income to balance (debit if loss, credit if gain) | 2,500 |
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.