Accounting Jorunal Entries: How do I record the merchandise I replaced damaged goods with?

I am trying to figure out the journal entries in replacing damaged goods in the example below: Suppose I am a retail store and one of my sofas was damaged by a third party. In order to to replace the sofa that was damaged, what journal entries should I be seeing? Note: I am not trying to figure out the... show more I am trying to figure out the journal entries in replacing damaged goods in the example below:

Suppose I am a retail store and one of my sofas was damaged by a third party. In order to to replace the sofa that was damaged, what journal entries should I be seeing?

Note: I am not trying to figure out the journal entry for the damaged goods but the sofa that is being brought in to replace the damage goods.
1 answer 1