Like what type of business? An accounting firm wouldn't have an inventory account. A manufacturer would have an inventory. Think of it as if a company is selling a product as opposed to services they would generally have an inventory account.
inventory clearing
Debit inventory spoilageCredit inventory account
Inventory is an asset account. They normally have a debit balance.
permanent account
Merchandise Inventory is an asset account that shows up on the balance sheet.
inventory clearing
inventory clearing
Debit inventory spoilageCredit inventory account
Inventory is an asset account. They normally have a debit balance.
Purchase account is a record account in which all inventory purchases are noted. This is commonly used with the periodic inventory method.
permanent account
Merchandise Inventory is an asset account that shows up on the balance sheet.
account receivable and inventory
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
Merchandise Inventory is an asset account, so the normal balance is Debit.
Perpetual
If the inventory has some value then it must be entered in a new general ledger expense account and have a new contra asset account for the items. Enter the estimated value as a debit to the inventory obsolescence account and then credit it to the inventory reserve account.