Setting up an Inventory Asset Account

[Dale Alspach]

This is not an expense, but a transfer between assets. If you are
selling the inventory, you should have a cost of goods sold account.

Buy 100 widgets at $10 each. Inventory debit $1000, checking credit $100.

Sell widget for $13. Income credit $3, Inventory credit $10, Cost of Goods
Sold debit $10, checking debit $3.

I hope an accountant will clarify this but Cost of Goods
Sold is a special expense account I believe since it is not really an
operating expense.

Dale Alspach