Inventory that was consigned in store but never payed for Our business is a Partnership LLC that does business as a direct sales company. The business started as a brick and mortar store. When the retail store closed, part of the inventory was put in a store for consignment. The inventory was not included in the partnership inventory for yearly taxes. The store proprietor never paid the partnership for the consignment inventory and is not making enough money to pay for sold items now. Does the partnership add the inventory back into their inventory and then right off the loss? If not, where should this be written off ? There are only 2 partners and we will be dissolving the partnership this year. |