Hi thank you for your response but it didn't answer my question.

I want to clarify hopefully you can edit your response or someone else can see I still  need help.

Firstly, I am not adjusting inventory for personal use I'm adjusting for damages. 

Second, I was asking what account to use and why and your answer says to ask an accountant.  I don't have one because my business is too small.

Also, I am trying to find out how to reduce Cost of Goods Sold when I adjust my inventory for damages in QBD.