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how do I report sale of my inventory?

inventory=$15,000 (valued at cost). Received $3,000.
Do I show ending inventory in COG section as =0 But where do I show $3,000.?

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Buy-a- Company


I am no accountant, so this is not tax or bookkeeping advice. You should get a CPA.

But it should work like this:

Inventory decreases $15000
COGS increases $15000
Sales increases by $3000
Bank account (or accts receivable if you sold on terms) increases $3000

COGS was $15000, so your net profit would decrease by $12000 (15000-3000).

Mar 23, 2011

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