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New AI Community Guidelines. Please review and follow them to ensure AI use stays safe, accurate, and compliant.

How to Identify Inventory Adjustment Account

edited Jun 2, 2025 2:30PM in Ask A Guru 7 comments

We designate an adjusting account in an inventory adjustment transaction, but which of these adjusting accounts should we generally designate?


Since the inventory is minus, it is reduced as an asset, but I am always puzzled as to what account should be designated.


Please let me know the best way to do this.

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