I'm not an accountant so this may seem like a very simple and silly question for the professionals but I need to get it right. I use the inventory function but when I need to adjust it (for damaged or missing products) which account do I apply it to? COG? or a regular expense account?
an expense account such as "Shrinkage" or "miscelaneous", unless you believe the change is due to an under or over estimate of the product cost in prior sales transactions. In the latter case it would be assigned to a COGS account in order to correct it.
Craig
From a pure debit-credit bookkeeping perspective, either COGS or an expense. MacroMan offered one basis for deciding. I suggest you ask your accountant if he/she has advice, instruction or preference.
inventory
products)
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.