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To understand how to manage the warehouse and showroom correctly, you can follow these steps:

1. Recording the Transfer:

   • Accounting Entry: From Cost of Goods Sold (COGS) to Inventory.
   • Valuation: The transferred goods should be valued at cost, which can be the weighted average cost or First-In, First-Out (FIFO).

2. Recording the Sale:

   • Accounting Entry: From Accounts Receivable/Cash/Bank to Sales.

3. Managing the Warehouse and Showroom:

   • Separate Ledgers: It’s best to maintain separate ledgers for the warehouse and the showroom to facilitate inventory tracking and control.
   • Perpetual Inventory System: A perpetual inventory system helps you track the movement of goods accurately, making it easier to manage inventory.

4. Inventory Management Software: Using inventory management software can simplify the process of inventory tracking and transferring goods between the warehouse and the showroom.