Setting up an Inventory Asset Account

[Erik Wickstrom]

Hi all,

I'm working on setting up my business' books in gnucash - so far it's been a
smooth process :-)  I do have an accounting question though.  My
understanding is that from an accounting standpoint inventory is considered
an asset.

I've created 2 accounts, Inventory Asset (under current assets) and
Inventory Expense.  If I purchase $1,000 in inventory, I naturally have a
$1k inventory expense, and I've exchanged $1000 cash for $1000 in goods.
How do I represent this transaction in gnucash?  Right now I have a $1000
expense, and a negative balance of $-1000 in my inventory asset account.

How do I make the $1000 come out of my checking account, have my expense
paid, and have the inventory asset increase?

Thanks for your help!
Erik