Hello to all,
We bought some goods from a vendor and now we return the goods to the vendor, it was 1 item of $ 2, the entry is
Dr. Inventory $2
Cr. Accounts payable $2
so the accounts payable balance is $ 2
after another transaction the weighted average cost changes shown below:
Quantity Unit price Weighted average
purchase 1 $2 1 * $2
purchase 1 $3 2 * $2.5
return -1 $2.5 1 * $2.5
but when we return the item based on weighted average cost it will be a different price the entry is