We sell rugs and we sold a rug for $48,000 dollars. It cost us $20,000. Two years later the client wants to trade the rug for a rug that retails for $28,000 and cost s us $10,000. The client has a balance with us now for $20,000 that they will use in the future
What the journal entries look like when we sell the second rug? I know that when we sold the first rug our cogs was $20,000. What would the cost be for the rug when we sell is again in the future?
