Disposition of lost inventory item

[Forever Flowers]

I have items in my inventory that I rent. One of these items came up missing when I went to retrive them from my customer. How do I record it in my books?

Any help would be greatly appreciated.

Thank you
Carol

[suzannemead]

You should have an expense account set up for Waste, loss, damages. Adjust you inventory and use that account to expense it.

[gibbo]

I assume you will bill them for the missing item. You say that you have "Items in my Inventory that I rent" - does this mean you are maintaining inventory and that you sell these items as well as rent them, or do you simply rent them?
If you simply rent them, but are not maintaining inventory, you simply need to set up an "Other Charge" for a generic missing item. Link to an Income account.
If you maintain Inventory, do you consider the missing item "sold"? If so, sell it and post the sale to an income account.
Otherwise, use Suzann'e method.
The question is whether you have to simply have another source of income, or to reduce an asset by increasing either income or expense.

[Forever Flowers]

Thank you all for the suggestions. I setup a Waste account and expensed the item just as you suggested.

Thanks
Carol