USA Nonprofit Accounting - purchase of groceries not for sale

PAN

Joined
Jul 3, 2020
Messages
13
Reaction score
0
Country
United States
Let’s say that Meals on Wheels organization purchased groceries for $1,950 not for sale but to feed the hungry.
The organization will continue to buy groceries throughout the year.
Purchase:
Rice $1,000
Beans $500
Pasta $300
Oil $150
-------------
Total $1,950

Can someone please help?
Can some please tell me how to record these transactions?

Thank you
 

BIG E

VIP Member
Joined
Dec 19, 2020
Messages
318
Reaction score
43
Country
United States
Program Services Expense - But if you keep perpetual inventory of each type of food, you post a DR to the appropriate inventory item, then when taken out of inventory, DR. Program Service Expense, CR Specific Food item.
 
  • Like
Reactions: PAN

PAN

Joined
Jul 3, 2020
Messages
13
Reaction score
0
Country
United States
Thank you so much, I really appreciate it.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,775
Messages
27,839
Members
21,814
Latest member
alea2024

Latest Threads

Top