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dmdpayroll
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Use the journal entry method posted earlier here - the sales receipt method is a unnecessary work around - 

 

Set up an inventory write-off expense account  to record the value of the damaged inventory > Entry  

Cost of Goods sold  Debit ...................................xxxxxx

 Inventory write off expenses  Credit .........................................xxxxx

 

I use this for many clients who have damaged goods and livestock.  You can manually change the inventory items to update your current inventory

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