Hi folks.
Quick question about selling stock.
When we buy stock, we record this as Stock Asset as we are going to be selling it. I think that is correct.
When we sell items, we charge P&P. When it comes to income, would we record the item amoutnt it sold for and as Stock. What do we do about the postage? Do we need to record this as seperate income, such as distribution and carrage? Would we then need to have Royal Mail as a client?
Does this make sense?
Thanks
If you charge someone for an item plus postage. Then the total amount including postage is income.
You then record the cost of postage as an expense.
That’s what I thought. Cheers