Goods distributed as free sample journal entry

To understand where Goods distributed as free sample journal entry would be accounted first understand the reasons of the distribution of goods as free samples

This can be :

To launch a new product in the market

create awareness of an existing product in a new market

Introducing new features of an existing product

Gain market share of a particular product in competition

gather feedback from consumers of the product

Goods distributed as free samples would be debited to the advertisement account and credited to the purchase account. These distributed goods are products given away by a business, usually for promotional reasons.

How to do Goods distributed as free sample journal entry?

The transaction will be debited to Advertisement A/c Dr. and credited to Purchase A/c

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