Used car inventory as expense

TarHeelMotors · ‎January 17, 2019

I am entering everything for a company I just started for (used car lot) I think I now understand how to enter inventory and add any cost associated with the inventory. My question is, I am entering everything that happened in 2018. This is where I get confused... we bought 20+ cars in 2018 but only sold 10, so when completing 2018 would all the cars that were purchased have not sold and the reconditioning for those cars be an expense since we did not sell them in 2018?

Rustler · ‎January 17, 2019

no, the 10 remaining cars should be inventory items, and as such are not an expense, they are an asset

qbteachmt · ‎January 17, 2019

All the cars purchased and not sold last year are entered the Exact same way we have been reviewing for you in your other topic. The Details are never Expense; they are right there, invested in the vehicle still on hand. You didn't Spend it; you converted Money to New Rims and Tires on that vehicle as you look at it. Think of Invested Cost, not Expense.

Topics

Training

Community

Resources

Used car inventory as expense

Used car inventory as expense

Used car inventory as expense

Need to get in touch?