Inventory that you have either trashed or donated will be reflected in a lower Ending Inventory, which will increase your Cost of Goods Sold. The calculation is:
Beginning Inventory + Purchases - Ending Inventory (which will be lower because the obsolete inventory is gone) = Cost of Goods Sold.
This calculation is accomplished on two screens:
- Report the value of your inventory
-
Let's get the cost of your goods.
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