Hello Everyone,
We run a ticket business where we have a physical location and we sell tickets for different shows/sporting events and concerts. We have 2 types of operation.
1) A customer comes to our store and buys a tickets for a particular show. Then we contact the venue and purchase the ticket at a discounted rate. So basically this way we don't stock on any inventory and we acquire the tickets after we collect the payment.
With the current scenario, I am wondering how to recognize and match the particular credit card charge that occurred for acquiring the tickets. For example:
- A customer buys a ticket for $100, we have linked our square account and recognize this as a Ticket Sale (income account)
- We then purchase the ticket for $80 with a credit card which is linked to QBO.
Should we match it with a COGS account (Ticket Purchases) or directly to an Expense account?
I am a bit confused what's the proper way to account for that..
- At the end of the week we receive a lump sum from Square for all sales that occurred during that week. What's the proper way to account for that event? We debit our Bank Checking Account (where the funds arrive) and which account should we credit? Earned Revenue? I am bit confused here as well.
2) The second scenario is when we actually acquire inventory in advance and then sell it directly to customer. What will be the proper accounting then? I assume, at the time of purchase of that inventory that we need to account a COGS account? The problem is that, when the credit card transactions come, It is very hard for me to distinguish which ones are for already sold tickets and which one for inventory..
Can you suggest proper treatments for those events? I really appreciate the help!
Thank you,
Looking forward to getting an advice on this!
teodor
