Cost of Goods Sold Question I own a store that resells trading cards online. When I purchase collections, is it a "Purchase" or "Cost of Good Sold"?

I'm here to sort things out with you, casualheroescard.

It's still a Purchase since you bought the collection with the intention of reselling it to make a profit. It becomes a Cost of Good Sold when the cost of the collection or item is actually sold by the business during the period.

QuickBooks uses this account to track how much you paid for goods and materials that were held in inventory and then sold. As soon as that item is sold using an invoice or sales receipt, its value is put into the Cost of Goods Sold account.

You can check out these articles that will help you track your inventory items:

• Set up and track your inventory in QuickBooks Online
• Can I track inventory manually in QuickBooks Online?

I'm just around the corner if you need more help. You take care always!

Ok, that makes sense. So when the items are purchased, the sales go to income so it will hit the PnL. 

Should I be doing Journal Entries to properly increase and decrease my COGS? As of right now the only time my COGS moves is with shipping costs. 

Ok, that makes sense. So when the items are purchased, the sales go to income so it will hit the PnL. 

Should I be doing Journal Entries to properly increase and decrease my COGS? As of right now the only time my COGS moves is with shipping costs. 

Good Morning, @casualheroescard. 

Thanks for reaching back out to the Community. At this time, I'm unable to advise you on which route to take. However, you can consult with your accountant to receive the best accounting advice for your unique business. If you don't have an accountant, you can check out this link to find one near you. 

If you have any other questions, feel free to ask. I'm always here to lend a helping hand. Have a wonderful day!