How to recording a parcel/lot sale closing for a land developer?
As far as I know the lots a developer holds for sale are considered inventory, not an asset. I received a closing statement for sales of 4 lots. Let's use a assumption case here to illustrate. On the seller side, it shows
credit of $720,000 sale price,
debit $ 528.62 for county property tax,
debit $225 for closing attorney fee,
debit $ 1,440.00 for excise tax,
and debit $612,000.00 for the release fees to the bank which issued the development loan.
How do I enter this transaction in QuickBooks? It seems using the Customer section may be more complicated than using a Journal Entry approach, right? If someone can provide some details on the best practice that would be wonderful.