In a Barter Transaction?

Bartering occurs when two or more parties – such as individuals, businesses and nations – exchange goods or services evenly without the use of a monetary medium. While a barter economy is considered more primitive than modern economies, barter transactions still regularly transpire in the marketplace.

How do you account for a barter transaction?

In a standard journal entry, a barter exchange account is treated as an asset account, and the bartering revenues are treated as income items. In the example given above, the barter exchange account would be debited $100 and barter revenues would be credited $100.

Which of the following is an example of a barter transaction?

An example of barter is when the people within a community exchange goods and services so that money needn't be used. An example of barter is bread provided in exchange for butter.