How would I book this transaction:

Sold an Inventory asset that has fully depreciated. Received cash

But I need to get the asset off the books as well

Received Cash: DR Cash
Income from Sales: CR Inventory Sales Income

COS:
Cost of sales from inventory(Original Cost Basis): CR Inventory
Depreciation: DR Accumulated Depreciation

And if not fully depreciated the difference is booked to Gain/Loss from the sale of an asset.

Is this correct?

Could you please explain what an "inventory asset" that is being charged off to COGS and is being depreciated. Doesn't work that way.

Inventory is something for resale and you don't depreciate it. If it's a depreciable asset (used in the company and not for re-sale), then you don't use COGS.

Can you please tell us what this asset is first?

Quote:

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Originally Posted by morgaine300

Could you please explain what an "inventory asset" that is being charged off to COGS and is being depreciated. Doesn't work that way.

Inventory is something for resale and you don't depreciate it. If it's a depreciable asset (used in the company and not for re-sale), then you don't use COGS.

Can you please tell us what this asset is first?

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Sorry,

I actually had two questions.

1)Sale of an inventory asset

Dr-Cash Cr- Inventory Sales income
Cr- Inventory Dr- COS Inventory


2) Sale of an asset that is depreciated

Dr - Cash ($$ Received) Cr-Asset Account (value of asset)
Cr- A/D for this specific asset Dr/Cr -Balance to Gain/Loss on Sale of an asset.

Quote:

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Originally Posted by ann5025

Sorry,

I actually had two questions.

1)Sale of an inventory asset

Dr-Cash Cr- Inventory Sales income
Cr- Inventory Dr- COS Inventory


2) Sale of an asset that is depreciated

Dr - Cash ($$ Received) Cr-Asset Account (value of asset)
Cr- A/D for this specific asset Dr/Cr -Balance to Gain/Loss on Sale of an asset.

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It's mostly correct. The A/D is already a credit so you need to debit it. You must reverse out both the asset and its depreciation.

The first time around you said the asset was fully depreciated. If that's the case, it has zero book value and it must be a gain. (If that wasn't correct, then it can be a gain or loss.)

Everything else here is correct.