inventory received not billed

My scenario has two parts.

1 – Someone approached me with a vehicle trade-in accounting question.  Client will be taking in a trade-in from their customer for a new vehicle sale.  New one is $15k and giving him $2k for trade.

A/R           $13000

Sale                          $15000

Trade        $2000

The system is set up it to generate a PO for the trade and receive it into inventory.

Inventory            $2000

Accrued Purch                        $2000

Normally the Vendor Bill would clear the Acc Purch account.  In this scenario there will not be a bill.  So how can I close or clear the Accrued Purchase account.  What would be the JE (or steps)?

2 – Once this unit is received into inventory at $2k the client wants to revaluate the unit at $2500 and sell at $2500. Can they do a  JE to revalue to $2500? Or do they leave on the books at $2000?


Rookie Asked on April 5, 2021 in Accounting.
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