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    lbarczykowski's Avatar
    lbarczykowski Posts: 1, Reputation: 1
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    #1

    Mar 30, 2012, 06:31 PM
    What do I adjust to have value of inventory to $3,550,000?
    I'm trying to do an adjusting entry with beginning balance in Inventory at $4,000,000 and I need a value in Ending Inventory of $3,550,000. Do I need to credit Inventory $450,000 and debit Purchases by the same amount?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 30, 2012, 08:21 PM
    Your debit will be to Cost of Goods Sold.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #3

    Mar 30, 2012, 11:19 PM
    Certainly credit inventory but it is more likely your debit will be to cost of goods sold of course there is a possibility it is stock shrinkage or work in progress providing a context is useful
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