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richi3202
Joined: 03 Aug 2008
Posts: 1
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| Posted: Sun Aug 03, 2008 7:04 pm Post subject: Cost of goods sold of service industry |
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Can anybody plz help me...
Suppose a service industry make a sale of software licenses and support. Whcih accounts should be debited and which credited?
i knw i must debit these ones but.....
Dr A/c Receivable
Cr Sale
Dr cost of goods sold - salary developers & cost of lic
cr???? |
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dp1903
Joined: 23 Sep 2005
Posts: 170
Location: Wichita Falls, Texas
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| Posted: Mon Aug 04, 2008 1:25 am Post subject: |
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| Does your company actually create the software it sells? |
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Ahshucks
Joined: 22 May 2008
Posts: 50
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| Posted: Tue Aug 26, 2008 12:17 pm Post subject: |
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| I don't believe you would have any reason to make the second entry, other than if you have accumulated something in job cost for inventory. You may need to recognize this revenue over the periods paid for. If you have a separate department for licenses & support, than record the sales there. |
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