E-commerce
Customs Duty Capitalized into Inventory
Adding customs duties and import fees to the cost of imported inventory.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Merchandise Inventory | Asset (+) | 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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