Thanks for the screenshots, Kevans27.

You're correct. Use the Income Account field to select which account you want to use to track income when items are sold. Otherwise, both purchases and sales amount will be posted in the COGS account. This is the reason why the amount in the COGS account is greater than what it should be.

You can change the selected account from Purchase-Cost of Goods Sold to an income account. Before making any changes, it's recommended to create a back up copy. This is to make sure that you can restore or undo the any modifications made to your settings.

Follow the steps in this article on how to save a backup file: Back up your QuickBooks Desktop company file.

Once done, proceed to changing the account by following these steps: 

1. Go back to your Item list and open the inventory item.
2. Click the drop-down list for the Income account and select the correct income account.
3. Click OK.
4. A prompt will ask you if you want to update the existing transactions. Click Yes if you want to proceed. 
5. Follow the same steps for the rest of the inventories. 

Once done, run your COGS report to check if the amounts are already correct. Let me also share these articles that can serve as additional guides when tracking inventory in QuickBooks: 

• Understand inventory assets and cost of goods sold tracking
• Add, edit, and delete items

Please add another reply below if you need anything else. As always, the QuickBooks Team is here to help you again.