The Ending Inventory Journal Entry is an accounting process used to track the amount of inventory held at the end of the financial period. This entry ensures that accurate and up-to-date records are kept of the amount of stock held by a business, as well as its value. When it comes time to close the books at the end of the period, this information must be reflected in the journal entries made for the inventory. It’s not just simply a case of counting up all the items; businesses have to also account for any adjustments made during the period, such as returns, discounts and write-offs. By ensuring that these changes are captured and recorded, businesses can accurately assess their ending inventory value – giving them insight into how well they’ve managed their stock throughout the period.