What will be the entry for goods distributed as free sample.
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Entry for goods distributed as free sample.
Replies (2)
If the records are maintained on a periodical inventory method
Debit Advertising expense
Credit Purchases
If the records are maintained on a perpetual inventory method
Debit Advertising expense
Credit Inventory
Yes, i agree with Maninder.
That Samples treated as Expenses (DR) and the cost of stock reduced from purchases (CR).
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