70 posts shown.
Brenda Chase3 said:Let’s look at an example. Say you buy 5 boxes of nails for $33 and you're setting up your retail inventory. In this scenario, your total cost basis is 5 x 100 = $167. Now, let's say you decide to set the retail price at $83 per box, including sales tax. That means your total potential sales value for this stock is $417.
If you end up selling 3 boxes, your actual revenue comes out to $250.
When you're recording the debit, you use the retail value of the inventory setup = $417
. When you're recording the credit, you use the total amount collected from the sale including tax, which is $250.
That leaves you with an ending inventory value of $167.
The general ledger doesn't really care about what you originally paid for the items; it focuses on the retail valuation you've assigned to them (the debit side) versus the total amount you actually charge the customer (the credit side).
Brenda Chase3 said:Let’s look at an example. Say you buy 5 boxes of nails for $33 and you're setting up your retail inventory. In this scenario, your total cost basis is 5 x 100 = $167. Now, let's say you decide to set the retail price at $83 per box, including sales tax. That means your total potential sales value for this stock is $417.
If you end up selling 3 boxes, your actual revenue comes out to $250.
When you're recording the debit, you use the retail value of the inventory setup = $417
. When you're recording the credit, you use the total amount collected from the sale including tax, which is $250.
That leaves you with an ending inventory value of $167.
The general ledger doesn't really care about what you originally paid for the items; it focuses on the retail valuation you've assigned to them (the debit side) versus the total amount you actually charge the customer (the credit side).
Brenda Chase3 said:Actually, it makes perfect sense when you look at how it works. The inventory ledger is maintained based on the retail price. Your entries should reflect the retail value including sales tax from your supplier, rather than the net cost. Think of it like tracking the full value held in stock.
http://www.irs.gov/regulations/inventory_valuation_rules
amberbadger17 said:My bad. I’m just looking at the price you're asking. That’s how I usually handle things, anyway.
amberbadger17 said:http://smallbusiness-chicago.gov.lin6.c-a.h...&gid=32&aid=55 Here’s the link that should actually be useful.
amberbadger17 said:I record the receipt regardless of whether the invoice is actually paid yet, because at that point, the stuff is physically sitting in the warehouse and ready to be sold. Once I move the product, I clear it out based on the cost price. If I’m actually making something—like putting together flower arrangements—I log the debit and credit using the retail price, otherwise, it’s just the cost. This whole logic applies to retail too...
Ethan Mitchell4 said:You don't really have to turn anything in to anyone; you just fill out the online form and hit send. They don't ask for much else beyond that. You just need to have your basic info ready (Social Security number, taxpayer ID, insurance number, education history, etc.)
I read somewhere that they might want scanned copies of certain documents, but so far, nobody has asked me for anything, and all my filings went through without a hitch.