What is the proper way to record a notation of a gift card, or anything else, that will be used as an auction item or as a door prize at a special event?
As Donation In Kind. Then you show this value as the value as COGS or Auction Items Expense.
Is this a journal entry? Debit account Auction Item Expense (expense account) and credit account Gifts in Kind-Goods (an income account)?
Thank you for taking time to reply. I received two answers, and while they were different, both made sense.
You don't use a journal entry in QB for the routine tasks, and not for Customer activity because you need a transaction, such as a Donation (Sales Receipt) form, and you need to use an item for this, to show it is income to you.
Then, instead of depositing this to the bank, since it isn't real money, you can put this on a Deposit and, on the next blank line, show the "from" account is the actual expense account. Enter the value here as a negative and this entry offsets the "deposit" so no bank account is affected.
A donation-in-kind is: donation of value plus purchase of same.
Thank you for taking time to reply. I received two answers, and while they were different, both made sense.
