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Question on Profit/Loss annually - Aplus - 05-04-2021

Question on Profit/Loss annually

Let me preface I never went to school for business. This kind of fell in my lap and I ran with it and researched and recorded everything about my small business. So please forgive my ignorance.

If I purchase products in December with the intent to sell however end up selling the item in January how do I record the Expense/Sale in my books for Profit/Loss for the year?

Example: Item is purchased at $1,000 in December and recorded as an expense in said month. New year starts and that item finally sells for $1200 in January. Do I record the full $1200, or do I record the profit of $200 only?

I am currently looking for a CPA to help. The one I have used for years sadly passed from cancer. The gentleman I used this past year was not very helpful answering any of my questions.

submitted by /u/pablocerakote
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