cost of goods sold account and inventory adjustment
I followed QB's instruction to create a cost of goods account and enter inventory for my product(just one single product for now).
Should there be a transaction regarding to the initial inventory purchase in the cost of goods sold account? Right now I don't see any.
I counted the 2009 year-end inventory and tried to do a inventory adjustment for 2009 year end by following the instructions.
I was going to use the cost of goods sold account as the adjustment account, but QB gave me a warning: "the account specified for the adjustment is neither an income or an expense account. Most people offset the change in inventory value to an income account if it's a gain, or an expense account if it's a loss"
I am confused what account I need to use and how I can keep cost of goods sold account updated.