Inventory in the General Journal 

A major change has been made in the general journal with respect to entries involving inventory accounts.  In year-end adjusting journal entries, it is no longer required for you to enter a quantity when attempting to change the value of an inventory account.  As long as the adjustment does not cause the dollar value of the account to become negative, then the entry can be made with a zero quantity, which will make year-end journal entries much easier to complete.

If you track detailed inventory, this would be considered a value change, and can be marked as such in the detailed inventory manager.

Last updated on June 23, 2017 by FCC AgExpert