Question

How is the value of a barter transaction determined?

Answer 1

Answer:

IRS guidelines dictate that you must value the transaction at the fair market value of the item you are receiving. In most cases, the fair market value is already known-it's the normal sale price of the item. The sale of your goods or services is valued at the purchase price of the goods you are receiving

Answer 2

Answer:

When accounting for barter entries, enter the amount of revenue and expense recognized from each barter transaction on the Income Statement during the period that the barter occurred. Clearly label all barter income and expense transactions in QuickBooks.