Friday, July 30, 2010

Question about expensing cost

Diana said...


I am not sure if this is where to ask this question. In a janitorial business I have soap dispensers that I sell. I do not charge for the dispensers and the installation

when a customers purcases my soap.I take the dispensers out of inventory.My question is how to I record the cost of the dispensers on the books. Are they sales expenses or are they considered assets to be depreciated. I currently have 4000

dollars worth of despensers installed in various businesses.
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3 comments:

  1. WebTaxOfficeUSAJuly 30, 2010 at 2:14 PM

    Thanks for posting your questions on our blog.

    The answer is very simple. You expense it at the time you install it at your clients business. These dispensers are your inventory and not depreciable assets.

    Hope that helps.

    Good luck,
    Web Tax Office Team
    http://webtaxoffice.com

    ReplyDelete
  2. DianaJuly 30, 2010 at 3:26 PM

    Thank you for answering my question so quickly. I really appreciate your web site.

    ReplyDelete
  3. DianaSeptember 25, 2010 at 11:43 AM

    I have an accounting question. I have some obsolete inventory that I plan on throwing away. I am not sure what account I would Dr for the cost of the inventory I believe the Cr would be the inventory account. Also if I donate any of the inventory would the Cr be Inventory and the Debit
    charitalbe contributions. Thank you for you help

    ReplyDelete