October 30, 2016 admin

Inventory Control & Data Processing—Service

Expenses

INVENTORY CONTROL & DATA PROCESSING—SERVICE EXPENSE ACCOUNT
7785/7985

ACCOUNT EXPLANATION
Costs of perpetual inventory control service & data processing service and of physical inventories of parts when such services are purchased from outside vendors.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Vendor invoices for monthly automated parts inventory control & data processing service inventory P
    Inventory Control & Data Processing—Service 7785
    Inventory Control & Data Processing—Service—Quick Lane 7985
      Accounts Payable—Trade 2100
             
  Monthly accrual for annual physical inventory & data processing service SE
    Inventory Control & Data Processing—Service 7785
    Inventory Control & Data Processing—Service—Quick Lane 7985
      Accrued Other Expenses 2423
             
  Annual physical inventory & data processing service billed by outside firm at less than accrued amount P
    Accrued Other Expenses 2423
      Accounts Payable—Trade 2100
      Inventory Control & Data Processing—Service 7785
      Inventory Control & Data Processing—Service—Quick Lane 7985
COMMENTS
  • Advice of tax counsel should be obtained regarding accrued expenses remaining unpaid at year end.