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Accrued Liabilities will be debited (increaseddecreased), and COGs will be credited (increased) by the same amount.
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Installation Bill – Comes in at $2000. This is the final bill.
Posting will be:
Accrued Liabilities – Credit $2000 to reduce
Accrued Liabilities – Credit $1000 to reduce by the difference between bills and customer invoice
Installation COGS – Debit $500 to reduce by the difference between bills and customer invoice
Furniture COGS – Debit $500 to reduce by the difference between bills and customer invoice
Check out the video below for a quick run-through of setup and usage!
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