Hello Everbody! I'm working for a small window contracting company that does not have an inventory. They pick up their windows from suppliers and deliver them to customers. I record every purchase through a purchasing account. It happens that the company made a mistake on one of their orders and now they have to re-order windows for their client and keep the wrong ones in their garage/shop. In other words, the company got losses b/c of mistake they made. What will be the right treatment for the wrong order? Should I record the wrong order through a purchasing account or through inventory, as the company is keeping the wrong windows (and probably will sell them out)? How can I record losses at this point? I am relatively new in bookkeeping; and I would highly appreciate your help.
-- Edited by Shamus on Sunday 14th of February 2010 11:05:04 AM
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Shaun
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