- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.
‎June 6, 2019
7:01 AM