Asset | Expense |
Furniture Intake | Furniture Outtake (COGS) |
Purchased Bed Outtake | Purchased Bed Intake |
In other words, it’s a loss if you give out more furniture than you take in.
Furniture values are determined by averaging the price of three of that item used.
Prior to the virtual system, we had to input furniture values every quarter into the books. Now values aren’t added until the end of the year, hence the need for an end of year inventory count.