If it is store credit, why are we paying taxes on the credit if we haven't used it. Wouldn't you just adjust the cogs of the item when you actually use the store credit on the next item you buy from the store? For instance, Lego gives you vip points, I am not claiming those points until I actually cash them in for rebates, then those rebates are factored into my final price I paid for the item.
I had a inventory question about starting and ending inventory. I purchased your course. Tax and book keeping. But i made a mistake last year. I do the cash method for inventory. [Writing off items at time of purchase] but i put in a starting and ending inventory. What can i do? Wasnt a huge amount maybe starting 8k ending 12k
If you are putting in an ending inventory number it means that that number is not being deducted. To use the cash method the ending inventory number should be zero which will force all of that inventory through cost of goods sold.
