October 30, 2016 admin

Inventory—Industrial Engines

Assets

INVENTORY—INDUSTRIAL ENGINES ASSET ACCOUNT
1444

ACCOUNT EXPLANATION
The lower of cost or estimated wholesale value of new and used industrial engines on hand for sale.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Industrial engines purchased on open account P
    Inventory—Industrial Engines 1444
      Accounts Payable—Trade 2100
             
  Used industrial engine taken in trade on sale PS
    Inventory—Industrial Engines 1444
      Sales—Industrial Engines 5491
             
   Costing new industrial engine sold PS
    Cost of Sales—Industrial Engines 6491
      Inventory—Industrial Engines 1444
COMMENTS
  • Subsidiary inventory records should support this account.
  • A physical inventory should be taken at least quarterly and reconciled with the balance in this account.