We run arcade and game stores. I use Quickbooks Desktop. We have inventory items for prizes. When previous accountant set up Quickbooks, she did not use inventory list. She booked inventory using general ledger. I wanted to use inventory list, so I activated inventory system and used "Inventory part". I used Cost of Goods Sold and Sales for income statement account and "Other Asset" Inventory for Asset account. When I updated the list, since previous accountant already booked inventory by general ledger, the inventory is doubled and Opening Balance Equity was increased. Should I just credit Inventory and decrease Equity for inventory that was booked by general ledger and keep the inventory list? Or since we are going to keep track of inventory only at month end by running physical inventory, should I treat our inventory as Non Inventory item and continue booking by general ledger? (Since they are prizes, that is the only way to keep track of inventory.)
