What will be the entry for goods distributed as free sample.
2 Replies
CA Mani
(Credit Analyst)
(2814 Points)
Replied 04 November 2009
If the records are maintained on a periodical inventory method
Debit Advertising expense
Credit Purchases
If the records are maintained on a perpetual inventory method
Debit Advertising expense
Credit Inventory
mallela.ravikiran
(learner)
(136 Points)
Replied 05 November 2009
Yes, i agree with Maninder.
That Samples treated as Expenses (DR) and the cost of stock reduced from purchases (CR).
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