COGS or promotion

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#1
JAD  
Posts:
4022
Joined:
21-Apr-2014 8:58am
Location:
California
Client wants to know if $1500 worth of inventory given out as samples should be posted to COGS or promotion. I have no idea. Any thoughts?
 

#2
Joan TB  
Posts:
1897
Joined:
21-Apr-2014 9:08am
Location:
Texas
I would suggest promotion. This $1500 is probably not significant and probably won't distort the COGS percentage, but since the items are not directly related to a sale, like COGS usually are, I would put it elsewhere.
 

#3
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2887
Joined:
21-May-2018 7:50am
Location:
Northern MI and Coastal SC
I typically put to promotion since it is not directly associated with sales.
 


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