Ok, thank you for the clarification regarding journal entries only being for adjusting. I did not realize that.

Also, I agree that little things like screws shouldn't be in inventory.  However, everything I entered as COGS gives a different Cost of Goods Sold amount than if we use our "actual" numbers for the COGS formula.

What is more accurate? Using real/actual numbers for the COGS formula, or the total of all items entered as COGS?  For tax purposes I see they use the beginning inventory amount, purchases amount, and ending inventory amount.  That's why we were concerned about inventory.