Rustler,

I'm in need of a little more clarification for a client of mine.  I've done the three part transaction for furniture purchases, i.e. 

Purchase

dr-inventory

cr a/p

Sale

dr: Cash

cr:  COGS

Inventory adjustment

dr: COGS

cr: Inventory

Client is saying that I need to have recorded this in a way that the sales of products(Furniture) should not show in sales.  Am I missing something here?  There is no way to do that, correct?  The COGS will adjust his gross profit; however, we have a GL Audit coming up and client doesn't want gross sales to show the furniture sales...