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belmelenterprise
November 25, 2021
Question

I am receiving the inventory for a cash bar, how do I record the Bottle deposit ?which expense and income account should the deposit be recorded under?

  • November 25, 2021
  • 1 reply
  • 0 views
I read that it should be set up as a service non tracked inventory item. Is this correct? I am trying to record the purchase of the liqour for a cash bar to add it to inventory so I can record the sale of the product .

1 reply

LeithG
LeithG
November 25, 2021

Hi belmelenterprise

 

I would record the liquor purchase as follows:

Debit: liquor expense

Debit: accounts receiveable - bottle deposit

Credit: Cash or other payment method

 

Then when you return the bottles, you simply record the return into your cash and lower the bottle deposit receivable.  

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