Definitely different from farm accounting, but I will take a stab at it! Purchase shampoo, on credit, package of 24 x 16-oz bottles -- some for resale, some for use in store: 2022-03-23 Product Inventory 240.00 Accounts Payable 240.00 Remove ten bottles of shampoo from inventory, for use in store, about ten shampoos per bottle (cost allocation): 2022-03-23 In-Store Product Inventory 100.00 Product Inventory 100.00 Customer receives shampoo and style, Invoice #101: 2022-03-24 Accounts Receivable 75.00 Cost of Goods Sold 1.00 Salon Services 75.00 In-Store Product Inventory 1.00 Customer buys two bottles of shampoo, on credit: 2022-03-25 Accounts Receivable 40.00 Cost of Goods Sold 20.00 Salon Product Sales 40.00 Product Inventory 20.00 Pay supplier for shampoo: 2022-04-15 Accounts Payable 240.00 XYZ Checking 240.00 Receive payment on Invoice #101: 2022-04-20 XYZ Checking 75.00 Accounts Receivable 75.00 |