Typically these accounts are set up for programs that have reason to resale items. Example: Students are working on a customer’s car, they need to purchase a water pump to install on the car, and they call O’Reilly’s have the part delivered, that part is paid for out of this program Resale Account (because they are going to resale that part back to the customer). So when the customer comes to pick up their car, they will bring the ticket to Ms. Gibby and pay her.
Ms. Gibby will break up that ticket because there is going to be several things on the ticket, things like parts, markup and some labor to help cover expendable items. She will put back into the resale account whatever the water pump cost to purchase and then she will take the markup and the labor and put it into the programs activity account.
So as you can see, money came out of this account to buy the part and then the money was put back into this account to cover the money that came out. This is not an account that should make money or lose money!!!
This account should always balance out or zero out.