Recording of Inventories Donated


Q: How do we record inventories when donated in the periodic inventory method?

Comments for Recording of Inventories Donated

Click here to add your own comments

Inventory donation
by: Anonymous

Q: How do we record inventories when donated in the periodic inventory method?

A: We do not need to record anything (meaning no entry or journal is needed) if the company is practicing periodic inventory method. This is because at the point when stock count is conducted, the stock donated are no longer available during the count, thus its cost has already been taken into account through the closing inventory value (lower of cost and NRV).

Click here to add your own comments

Return to Ask a Question About This Lesson!.






Enjoying this Website?
Help Support it with a Donation

OR...





Advertise on Accounting-Basics-for-Students.com