The medicine expired and was returned by the hospital. The tax office requires an "input tax transfer" and a loss. But the drugs are still in the warehouse, what accounting entries should be made?

Borrow: Revenue from main business

Taxes payable - VAT payable (input tax credit transfer)

Credit: Accounts receivable (bank deposits)

2. Before the drugs are formally approved for disposal

Borrow: Profit and Loss of Property to be Disposed of

Credit: Inventory

4. When approved for scrapping:

Borrow: Administrative Expenses

Credit: Profit and Loss of Property to be Disposed of