The Income Summary account is used to adjust for Inventory Shrinkage.

Name: The Income Summary account is used to adjust for Inventory Shrinkage.
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The Income Summary account is used to summarize the revenue and expense accounts at the end of an accounting period in order to determine the net income or loss for the period. It is not used to adjust for inventory shrinkage, which is typically recorded as a cost of goods sold expense.

The Income Summary Account Is Used to Adjust for Inventory