Hi:
There is an Inventory Adjustments account in the cost section of the chart of accounts containing a large negative balance, because the beginning costs and quantities for the new inventory items were posted in the Item Journal earlier this month.
Since this results in a large figure in the cost section of the income statement and since this was the beginning of the posting of inventory costs and quantities for these new items, from an accounting standpoint is there a way to "write this off" so that these inflated figures do not appear on the balance sheet or income statement?
Thanks!
John
