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S
Schmidie
October 7, 2019
Question

Journal Entry for removing fixed asset ( invoice created for sale)

  • October 7, 2019
  • 1 reply
  • 0 views

My employer has sold a fixed asset ( Dump Trailer) for $3,500 plus tax, an invoice was created and a payment was applied in the "Receive Payment" Module and then the payment was recorded in deposits module. 

 

Now I have to do the journal entry to remove the inventory, but can't db the bank as that's already been done, so I am missing an account to balance the transaction or should the payment not have been done that way?

 

                                                           DB                    CR

XXXXX                                           $3,500.00

Amortization- Autmotive           $8,095.99

Automotive Equip. Expense                             $8,800.00

Loss/Fain on Sale of Asset                                 $2,795.99                        

1 reply

L
LauraAB
October 7, 2019

Hello Schmidie,

 

When dealing with accounting for the sale of assets, I always recommend touching base with an accountant to make sure you get these details just right. I have a suggestion for how you may be able to handle the inventory quantity on hand in QuickBooks Desktop that you can bring to your accountant.

 

You may want to consider the Inventory Adjustment tool built into the program. It can be accessed through the Inventory Activities icon on the Home window or through the Item List's Activities option. In both cases, you'd be looking for Adjust Quantity/Value on Hand.

 

Once the window is launched, make sure the Adjustment Type is set to Quantity, then choose the appropriate date and account. Select the item in question in the Item column, then put enter 0 into the New Quantity box to fill it out. Save to change the inventory amount.

 

Note that it's important to consider how this may affect the transaction you've already done. Once again, please speak with an accountant to determine if this is a good option for you or if you should be removing the inventory quantity another way.

 

To learn more about inventory adjustment, bring up the QuickBooks Desktop Help window in the program via the Help menu. On the Have a Question? screen, navigate to the Help tab, then click Search to bring up the search bar. Use keywords to find in-product articles.

 

I hope that helps!

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