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If the customer does not pay you, at the level of the law, it is necessary for the court to intervene. Only then can you pull the furniture to offset the payment. Then there will be a certificate from the court.
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Hello This way of thinking is to deal with it according to two lines, one is the business you originally had with the customer, and the other is equivalent to your purchase of furniture.
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Accounting treatment should be carried out in accordance with the provisions of Accounting Standards for Business Enterprises No. 12 - Debt Restructuring, customers are deemed to be sold to the outside world, and your company does write-off accounts receivable, if furniture is accounted for as fixed assets.
Accounting Entry: Debit: Fixed Asset.
Tax Payable - VAT Payable - Input VAT.
Credit: Accounts receivable.
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