 statement if it went through the entire process, meaning if we were able to properly allocate it, it would go to a job. The job would then be sold. And when it was sold, it was going to go to an income statement account in the form of cost of goods sold. So this would be its ultimate destination in any case. So that's the justification for it going to cost of goods sold. So again, we got this difference. It's going to happen every time because we're using estimates. We need to get rid of it. We got to put it through an income statement account to do that, because the income statement accounts will close out to retained earnings. We're going to choose cost of goods sold in order to do that, because that would be the natural income statement account to choose. Also note that this amount could be a debit or credit at this point. It happens to be a debit now. But if it were a credit, we would still write it off to cost of goods sold. And that means that cost of goods sold could be, we might end up having to credit it in order to do this, which should look a little unusual because it's cost of goods sold as an expense account. It usually only goes up in the debit direction. This is an exception to that rule typically, because if we have to credit cost of goods sold, we'll do that anyways, because we're going to do whatever we need to do to make this go to zero. It's not about cost of goods sold. Cost of goods sold is just an account we're using to clear this out. And the reason it's okay is because it's in material to decision making processes. Okay, so that's what we're doing. So the journal entry is pretty straightforward. Once we know that, we're just going to say, okay, I need to make this zero. It has a debit balance in it currently. So we're going to do the opposite thing to it. We're going to credit it to make it go down. So I'm going to right click and copy that. We're going to put that on the bottom in F five right click and paste 123. The credit's just going to be for whatever's in there. It's going to be 380. Then we're going to debit something. We got to figure out what we're going to debit to we're going to say negative that number debit 380 could just type it in there. We're going to say, hmm, where could I put this thing? Get rid of it because I don't want it there for next mod should hop out down here somewhere. So then it flows out to retain earnings and we don't never have to see it again. Seems logical to put it to cost of goods sold because that's what would ultimately go anyways, at some point in time, let's do that. So cost of goods sold expense account, we're going to right click and copy. And again, it doesn't make sense to think about the expense account here and say, does it make sense from a cost of goods sold perspective in any other way than what we've discussed, meaning cost of goods sold is an expense account. It only goes up with a debit direction. It doesn't mean necessarily we're going to debit this because it's just we couldn't be crediting cost of goods sold because again, we're just we're doing whatever we need to do to clear out this estimate that was was wrong because it's an estimate. Okay, so we're going to go back up here and put this into F4 right click and paste 123. And that's it. So then we'll just post this out. Here's cost of goods sold cost of goods sold is way down here. So we're gonna have to scroll all the way to the right to post this to the GL. So it's going to be the same order assets, liabilities, equity, cost of goods sold way over here. It's going to be on the debit side. So I'm going to put my cursor in AA 18. We're going to use our arrows to do this. I'm going to hit equals, then use the left arrow to just keep going left, left, left, left, up, up, up to get to that cost of goods sold and enter. So there's the cost of goods sold goes up to the 380 that 380 then can be found on the trial balance. Actually the 380 that is fun on the trial balance for out of bounds by the 380 and net income went down by the 380. That's a loss because there's no revenue. So we actually did hit the income statement, but it's for a small amount here. And then we're going to record the other side factory overhead to bring it to zero. That's third to last asset account. So we're going to go down here. It's right there. We need on the credit side. I'm in t 30 where we say equals. I'm going to just scroll up to the last journal entry. And there it is 380 and enter. So that brings the 380 down by 380 to zero. That zero balance is now on our factory overhead here. So that's we achieved our goal here. We did affect the income statement and affected net income for this time period, which may or may not be right. It might be wrong timing wise. It should go there anyways at some point in time, you know, it's only a timing difference, hopefully, because we will sell the inventory at some point. But it's off timing wise. It should be pretty small relative to our the rest of our information when we were and we haven't recorded the sales point, which will do later. So it should be small compared hopefully to the rest of the numbers. And therefore, it's okay to do that because we need to make this zero so that we can start this whole process over in the next time period the next month.