Home› Accounting› Accounting Technical Support

What is the proper way to enter barters as payments?

daviddickersondaviddickerson Member Posts: 1

My wife is a midwife, and will occasionally have clients who want to pay a portion of their cost through bartering either goods or services. How do I set this up in Wave? In the United States.

in Accounting Technical Support

Comments

  • cfiversoncfiverson Member Posts: 4

    Also interested in this! Some barter is for business expenses, and some for personal.

  • MikegMikeg Member Posts: 995 ✭✭✭

    @daviddickerson, and @cfiverson,
    Since cash has not exchanged hands you would need to use journal entries to record the revenue and applicable expenses or draws (personal use). So as an example, let's say you perform some service worth $400 and barter for some office supplies ($75) for the business and a personal house repair ($325). You would would record the following entry.
    (Income Statement) Debit Office expense $75
    (Balance Sheet) Debit Owner Draw $325
    (Income Statement) Credit Service Revenue $400

Sign In or Register to comment.