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arkvalleyinfo
December 11, 2018
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Accurately account for SAMPLES received as COGS

  • December 11, 2018
  • 1 reply
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We purchase samples in order to test and determine if the product is an item we want to sell. Currently the samples go into a COGS account called Samples. Because these are samples and not actual product for sale they do not show up in COGS when I create a P&L. How do I accurately account for the COGS of these sample items?
Best answer by hedy11

To put samples in COST OF GOODS SOLD is confusing and not the right place.  I would suggest it belongs into EXPENSE:  PRODUCE SAMPLES  as these are not compiled into any cost of goods yet, and are an ongoing expense to running your business by testing and trying out samples.

1 reply

H
hedy11Answer
December 11, 2018

To put samples in COST OF GOODS SOLD is confusing and not the right place.  I would suggest it belongs into EXPENSE:  PRODUCE SAMPLES  as these are not compiled into any cost of goods yet, and are an ongoing expense to running your business by testing and trying out samples.

    C
    ChrisM67
    January 8, 2020

    Would you put the tax line mapping to Other Deductions: Office Expense

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