No, do not enter your inventory adjustment as an u...
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Get your taxes done using TurboTax

No, do not enter your inventory adjustment as an uncommon difference on the M-1 worksheet.  You need to go back to QuickBooks and reduce your COGS by the $7,114 inventory adjustment.  Go back to your Journal Entry where you made the adjustment to increase inventory by $7,114 and make sure the other part of the entry is reducing COGS.  This might require that you create a new General Ledger account called something like "Increase/Decrease in Inventory".  That will reduce your QuickBooks COGS to $26,681 to match Turbo Tax.  The only M-1 adjustment will be the disallowed meals & entertainment deduction.

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