E-commerce
Dropshipping — Cost Recognition at Sale
Recording revenue and the corresponding supplier cost when a dropshipped order is placed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Stripe | Asset (+) | 96.10 | - |
| Payment Processing Fee | Expense (+) | 2.90 | - |
| Sales Revenue | Revenue (+) | - | 99.00 |
| Cost of Goods Sold (Dropship) | Expense (+) | 55.00 | - |
| Accounts Payable (Supplier) | Liability (+) | - | 55.00 |
💡 Accountant's Note
In dropshipping, inventory is never held. When an order is placed, the cost owed to the supplier is recognized immediately as COGS. There is no inventory asset at any point.
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