We're a non-profit that runs several farmers markets and I need to know how to record a loss.
Here's the scenario: It's an online market, customers place orders online Friday - Sunday then pick their orders up Tuesday. Sunday evening our farmers get a notice of what has been ordered from them, they pack everything up and bring it to the customer pickup location.
How do I record a loss that is our fault? For instance, a watermelon rolls off the table and breaks; this is not the farmer's fault nor the customers fault. How do I record the loss of the watermelon?
Should I create Journal Entries? I would debit a Loss account, but what account do I credit? Or is there a better way to do this?