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November 14, 2023
Question

S-Corp making charitable donation of Inventory item to a Non-profit Org.

  • November 14, 2023
  • 2 replies
  • 0 views

What would be the Journal entries in Quickbooks , to account for this transaction? I know to credit Inventory on B/S and debit Charitable Donations acct on Income Statement. 

The second entry would be to Debit End Inventory in COGS and Credit Purchases, correct?

2 replies

November 14, 2023

Thanks for getting in touch with the Community, MichaelDi930.

 

To properly identify which accounts you should be using for certain journal entries, I'd recommend working with an accounting professional.

 

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

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You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

 

If there's any additional questions, I'm just a post away. Have a great day!

Rainflurry
November 15, 2023

@MichaelDi930 

 

The only entry is a debit to Charitable Donation and a credit to Inventory.  If you use QB to track inventory, make a quantity adjustment and select Charitable Donation expense as the adjustment account.