My e-commerce business recently ran a raffle for charity in which we sold donated goods. The raffle has concluded and we are trying to ensure we set up everything correctly in Quickbooks to record the following:
- Sales of Raffle Tickets
- Shipping Expenses of Prizes
- Materials & Other Fees associated with Prizes
Not knowing the best solution, we decided to set up a "Charity Raffle Sales" under "Other Currnet Liabilities" to record sales of tickets during the actual raffle. Now that raffle is concluded and all of the prizes have been shipped out to the winners, we are thinking we should create a bill to pay the non-profit we have set up as a vendor. The bill would itemize the above 3 items to reflect the total donation to be made to the non-profit which we would pay out of our accounts to close out the bill. The other items would be line items associated with spend but I am curious how to classify them. Also, we are not sure what then we should do with the liabilities account we created.
Would appreciate any help that can be given as we are by no means accountants and we cannot seem to find anything similar in the forums. Thanks!
