Entering the cost of goods sold is associated with your inventory items. Selling them to your customers will affect the total amount recorded in the said account. Use this article to read and learn more about the cost of goods sold: What is the Cost of Goods Sold?
I've included this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.
Let me know in the comments below using the Reply button if you've got questions other than working with your accounts. I'll be here ready to lead a helping hand. Take care always!
I do not have inventory items available on my program...I am using the essentials version and I believe that I can not record cost of goods with this version. It appears that I need to upgrade to get the functions I am looking for. Thank you