I am using QB Pro 2013 Desktop for bookkeeping and reporting purposes, I record everything at the end of the month. My question is regarding setting up my Inventory and Sales Account. I know that it should be done through Items & Services and Sales Receipt, but which account should I link my inventory to, Other Current Asset? And which Account should I link my Sales to, Income or again to Current Asset?

When I enter my inventory purchases into the system then how do I track it against the sales I make out of the purchased inventory, when I make sales for sure I add benefit on the top of purchased prices. If I record inventory and sales under Other Current Asset, it only reflects balance sheet, and if I record sales as income it reflects P&L and Inventory stays unchanged on my P&L. How should I track these two properfly and which accounts should these be associated with? Thank you for your answer.

(Title has been edited by moderator for clarity)