09-07-2011, 03:44 AM
[quote]<i>Originally posted by Dard</i>
<br />The scenario is very unrealistic. Prices of same items can not differentiate that much in a matter of weeks. One item was bought at $100 and just after five months the same item was brought at the rate of $1! The major difference will definitely result in a negative inventory value if the more expensive item is returned later.
[Simply cost of goods sold would be reduced automatically(iecredited).Trading profit or loss would be treated in cost of goods sold section not in other income.Thanks /quote]
<br />The scenario is very unrealistic. Prices of same items can not differentiate that much in a matter of weeks. One item was bought at $100 and just after five months the same item was brought at the rate of $1! The major difference will definitely result in a negative inventory value if the more expensive item is returned later.
[Simply cost of goods sold would be reduced automatically(iecredited).Trading profit or loss would be treated in cost of goods sold section not in other income.Thanks /quote]
