Accounting for Parts Used or Lost (for Tax Purposes)

by Mary Wong.
(San Gabriel, CA)

Hi,
For tax purposes I have to report my inventory of parts.

But I never know how to bookkeep parts that fall on the floor that I can never find or wires, head pins, etc. that I use in prototyping that cannot be used again.

(I have a lot of inventory “loss”).  How should I account for these?
Thanks, Mary

Mary Wong
Simply Brilliant