Hi - Thanks for your patience and this detailed answer. I think I understand what you are saying in your example, but at the same time I'm confused because of what I wasn't clear on when I asked the question.
When you're filing your Schedule C, how do you 'report' or 'keep track of' the Worthless Items taken out of inventory? Is this only in the store books or does it have to be itemized on the schedule C (somewhere) Outside of an audit, is 'beginning inventory' and 'ending inventory' all you have to report in regards to 'cost of goods sold'?
I appreciate your help
