How do you make an adjusting entry at the end of the month when your physical inventory is more or less than your book balance?

Adjust the inventory with the appropriate debit or credit that will get your balance to the physical count. That is, if the physical count is lower, you have to credit to get down to that amount. And vice versa. The other side of that entry is cost of goods sold.

Thank you very much.

You're welcome. :-)