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sometimes the quantity of inventory changes but not just for buying and selling we have to make special adjustments to inventory whenever the quantity of inventory changes for any other reason besides buying selling or returning merchandise now you may ask why would the inventory quantity change if you did not buy and sell or if nobody returned to us or we did not return any merchandise to the vendor what could be the reason the quantity of inventory changed well number one theft it doesnt happen very often its not a normal part of business but it is something that causes the quantity of inventory to change that is not buying selling or returning a catastrophe such as a fire a flood or tornado earthquake or some kind of damage where the building collapses that would be an event thats rare thats not part of normal business operation but it would cause inventory to change in quantity spoilage if we are in the apple and banana business nothing spoils fast