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General Accounting Discussions: Goods in transit

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  1.  
    • CommentAuthorRosa
    • CommentTimeMar 7th 2008
     
    How will you journalized the "goods in transit"? The journal posting I booked in the monthly closing is this:
    (DR) Stock(goods in transit
    (CR) Deffered Expense

    I know that this entry is not correct. What I did in my reporting is manual adjustment the deffered expense to accounts payable account
  2.  
    if the goods have been shipped to the company FOB, shipping point, meaning title passes to buyer the moment the seller shipped goods, you should defitely make a journal entry on your book, however, if it have been shipped FOB destination, you should not make an entry until they are actually received.
  3.  
    the correct entry is as follows:

    (DR) Purchases
    (CR) Accounts payable

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