USA Spoilage account?

[djh7580]

What is the proper way to set up a spoilage account in Sage 50? If I buy $100 worth of bananas (which is reflected in the COS) and $50 of them go bad before I am able to sell them, I would need to adjust the inventory to reflect that. What would the correct GL source account be for this adjustment?

 

[AllanMadan]

when you initially buy $100 of banana, you would put into inventory right?

Then if it goes bad, you can move it to the Cost of Sale - purchase.

 

[djh7580]

Yes, the inventory is all put in on itemized bills into sage (in the inventory account) when they are initially purchased. When they are adjusted, they should be taken out of Cost of Sales?