COGS

I'm setting up accounts for a temporary partnership this summer. I have Cost of Goods Sold as a 500 account, or an expense. However, on the income statement, they seem to be recorded under income.
i.e. sales+cogs=gross margin
on the trial balance sheet, I still have them as an expense.
in which account type do I catagorize cogs?
Thanks,
--
Yours,
Dan S.
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

COGS is en expense ie Dr. It is probably recorded under income so that for presentation purposes, it is deducted off sales which is a Cr. The accounting system may not differentiate between cost of sales and other expenses.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.