E-commerce

Customs Duty Capitalized into Inventory

Adding customs duties and import fees to the cost of imported inventory.

Account NameTypeDebit ($)Credit ($)
Merchandise InventoryAsset (+)3,500.00-
Cash / Bank (Customs Payment)Asset (-)-3,500.00

💡 Accountant's Note

Import duties are part of the landed cost of inventory and must be capitalized under IAS 2. They increase the inventory cost and therefore the COGS when items are eventually sold.

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Expert Analysis by Qusai Ahmad

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