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That sounds perfect. What is the question?
Answers are easy. Questions are hard!
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I keep getting an error message, saying "Ending inventory in the cost of goods sold section is different than the ending inventory on the balance sheet". How do I get around this?
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Answers are easy. Questions are hard!
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My understanding:
The inventory as of 10/15 was distributed to the shareholder(s).
For the purpose of correctly computing the COG , you wanted to use the 10/15 amount as the "ending balance", but the "ending balance" for the year was actually zero.
If the above was the correct picture, let's say the distributed inventory (10/15/ balance) was $15000, I would reduce purchases (credit) by $15,000. For audit trail, I would debit an account titled "Non-sale Inventory", "distributed inventory" "Special order inventory"... on the balance sheet.
Then record journal entries:
Debit draw (showing the distribution)
Credit "distributed inventory" (or whatever). Keep ending inventory to zero.
The amount paid for the distributed inventory should NOT be part of the COG.
I come here for kudos and IRonMaN's jokes.