E-commerce
Inventory Shrinkage — Physical Count Adjustment
Adjusting the books when the physical warehouse count shows fewer units than the system balance.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory Shrinkage Expense | Expense (+) | 650.00 | - |
| Merchandise Inventory | Asset (-) | - | 650.00 |
💡 Accountant's Note
Shrinkage in e-commerce warehouses results from picking errors, damage, or theft. Regular cycle counts identify discrepancies that must be written off to keep the balance sheet accurate.
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