If a client "donates" a service to a charity, how is that posted? Example: A carwash company gives a $30 coupon to a charity event.

ANSWER

The BIDaWIZ Team's Answer:

Based on your example with the Carwash giving a $30 coupon to a charity event.  There would not be any transaction recorded until the time the coupon is redeemed, as the service has not been performed and the company has not incurred any expense in performing the service.

However,  once the coupon is presented to the carwash and is redeemded for services.  The entry would be as follows:

Dr.  Charitable Contribution      $30.00

      Cr.  Income (Car Wash Service)        $30.00

To record carwash services performed for redemption of chariy issued coupon.