hi,your reply is very useful to me.but I still have a question. some of my stocks are missing not knowin why.

i find that there are some items to choose in the "inventory adjustment account" ,including "change in inventory", "cost of sales", "inventory shrinage", Other", etc. which one should I choose? "inventory shrinage"?is there any other field or memos to record the real reasons?

if I choose "inventory shrinage", how does it affect my balance sheet and income statement?