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Bajadreamer
Level 2
posted
‎September 02, 2022 03:58 PM
last updated ‎September 02, 2022 3:58 PM

Inventory-where should the value be at the end of year? Should it be listed as an assett or simple equity?

Let me preface this and say my QB does not interface anywhere and I use it strictly for personal use.  No accountant ever see's this.

 

My question is this-
At the end of year I have approx $69,000 of inventory that will be sold next year. 
It was already expensed in the current year as COGS.  
Is it proper to have this listed on my balance sheet as an asset?  If so what account would I offset it as, retained income? Then once it is sold then I would do a GJ to remove the asset and and offset it to income, correct

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Best answer September 03, 2022
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BigRedConsulting
Community Champion
Community Champion
‎September 02, 2022 04:14 PM

Inventory-where should the value be at the end of year? Should it be listed as an assett or simple equity?

Inventory should only be expensed to Cost of Goods Sold when you sell it.  Before that, when you've purchased it and not sold it, it's an asset on your Balance Sheet.

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BigRedConsulting
Community Champion
Community Champion
‎September 03, 2022 08:36 AM

Inventory-where should the value be at the end of year? Should it be listed as an assett or simple equity?

Yes. Or, you could use the inventory items built into QuickBooks on your purchases and sales. QuickBooks will then handle the accounting for you automatically, calculating the COGS for you as you enter sales.

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3 Comments 3
BigRedConsulting
Community Champion
Community Champion
‎September 02, 2022 04:14 PM

Inventory-where should the value be at the end of year? Should it be listed as an assett or simple equity?

Inventory should only be expensed to Cost of Goods Sold when you sell it.  Before that, when you've purchased it and not sold it, it's an asset on your Balance Sheet.

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Bajadreamer
Level 2
‎September 02, 2022 05:05 PM

Inventory-where should the value be at the end of year? Should it be listed as an assett or simple equity?

Thank you!  So it looks like going forward I will enter all purchases as asset, then at end of each month I could do a GJ to reduce the asset and increase the COGS of all items.  By doing this it should give me a clearer picture of business 

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BigRedConsulting
Community Champion
Community Champion
‎September 03, 2022 08:36 AM

Inventory-where should the value be at the end of year? Should it be listed as an assett or simple equity?

Yes. Or, you could use the inventory items built into QuickBooks on your purchases and sales. QuickBooks will then handle the accounting for you automatically, calculating the COGS for you as you enter sales.

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