Journal entries: Inventory and cost of goods

Cost of goods sold, the periodic and perpetual systems at period end, write-downs, shrinkage and surpluses, goods used internally or donated, freight-out.

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The entries

1. Recording the month’s cost of goods sold in one entryNot in: Spain (PGC 2007), France (PCG 2025)
2. Period-end cost of goods sold under the periodic system
3. Writing inventory down to net realizable value
4. Using goods from stock as office suppliesNot in: Spain (PGC 2007)
5. Paying freight-out on goods sold
6. Returning damaged goods for a cash refund
7. Purchase discount taken, reducing inventoryNot in: Spain (PGC 2007), France (PCG 2025)
8. Recording an inventory count surplusNot in: Spain (PGC 2007), France (PCG 2025)
9. Donating goods to a charityNot in: Spain (PGC 2007)
10. Transferring unsold purchases to inventory at year endNot in: United States (US textbooks)

Other topics

• Starting the business
• Buying goods and supplies
• Selling goods and services
• Fixed assets
• Expenses and payroll
• Adjusting, closing and correcting
• Cash and bank
• Notes and loans
• Corporations and equity
• Multi-step scenarios