[jackaroe]

What’s the adjusting entry if someone books a sale in X1 and they shouldn’t have because the item was out on consignment?

For a regular sale that is booked in X1 but shouldn’t have been – the adjusting entry is (pls. let me know if it isn’t) as follows:

Sales X (dr)

Inventory Y (dr)

A/R X (cr)

COGS Y (cr).

TIA

[NYCaccountant]

Why not just simply reverse it? Entry for sale:

AR – Debit 1,000

Sales – Credit 1,000

Cogs- Debit 900

Inventory – Credit 900

On reversal:

Sales – DEBIT 1,000

AR – CREDIT 1,000

Inventory – Debit 900

COGS – Credit 900

Your entry is correct.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

Why not just simply reverse it? Entry for sale:

AR – Debit 1,000

Sales – Credit 1,000

Cogs- Debit 900

Inventory – Credit 900

On reversal:

Sales – DEBIT 1,000

AR – CREDIT 1,000

Inventory – Debit 900

COGS – Credit 900

Your entry is correct.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[musicamor]

You must reverse the impact of the sale – just do the inverse to record as consignment as of a particular period.

Texas CPA - licensed in 2012!!!

[musicamor]

You must reverse the impact of the sale – just do the inverse to record as consignment as of a particular period.

Texas CPA - licensed in 2012!!!

[Author]

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