Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Items received into inventory are considered an asset until they are sold so it is correct that they are being debited to that account. When they are sold, the inventory asset account is reduced and the COGS is increased because you have now sold those goods -- COGS for an inventory item is not affected until an item is sold so that the income from that item and the cost of that item are both reflected on the same period in the income statement.