Do I need to record/report store credit in addition to cash when purchasing items.

UPDATED: Sep 30, 2022

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Do I need to record/report store credit in addition to cash when purchasing items.

I buy secondary market items and resell them at a markup. I know I should record and report all cash purchases of inventory, but sometimes we also give people store credit in addition to, or instead of cash. Do I need to record and report that the same way I do with cash purchases?

Asked on April 20, 2017 under Business Law, Nebraska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, any exchange of value must be recorded, whether that exchange takes place in the form of cash, in the form of a store credit, in the form of physical goods, in the form of you paying some debt (e.g. if they had previously bought items under a payment plan, and you paid off the balance for them), etc. It is the exchange of value, not the medium, which matters.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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