Retail
Year-End Inventory Shrinkage Adjustment
Adjusting the books when the physical stock count is lower than the system balance.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Goods Sold (Shrinkage) | Expense (+) | 800.00 | - |
| Merchandise Inventory | Asset (-) | - | 800.00 |
💡 Accountant's Note
Often caused by theft, damage, or errors. This entry ensures that the Balance Sheet reflects the actual physical items currently in the warehouse.
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