How to record Damaged Goods/Inventory in quickbooks？

Never Debit COGS and Credit inventory, if you are tracking inventory by actual Inventory Type items and Name; you just broke the relationship between the account balance and the item Values. That is a mistake. You use the Adjust inventory function, not a JE, because you must list the Actual Products you want to affect, by Quantity.

You dispose of damaged goods, enter the loss for theft or "shrinkage" by using the Inventory Adjustment function.

Greetings too, @Hareesh Kumar.

Yes, I'm here to provide the steps you need to write off the total value of your finished goods that were hanged for six months. The process below won't cover a single entry, but it's the appropriate one to reflect on your books. With this, I'll guide you through them, depending on the product you're using. 

If you're using QuickBooks Online (QBO), you'll have to record the uncollectible invoice as a bad debt and write it off. It helps ensure your accounts receivable and net income will stay up to date.

To start with, let's set up a bad debts expense account: 

1. Go to Accounting from the left menu and choose Chart of Accounts.
2. Click New. 
3. Select Expenses as the Account Type. 
4. Choose Bad debts as the Detail Type.
5. Enter “Bad debts” in the Name field. 
6. Click Save and Close.

Second, let's create a non-inventory bad debts item from the Products and Services menu. Just select Bad debts as the Income account for this, as seen in the screenshot below. 

Third, let's record a credit memo for the bad debt. Just select Bad debts in the Product/Service section and enter the total value in the Amount column. View the screenshot below for your visual reference. 

Fourth, let's apply the credit memo to the invoice from the Receive Payment screen. For the detailed instructions, see Steps 2 - 5 through this article: Writing Off Bad Debt In QBO. Here's a sample screenshot of how it looks like in QBO. 

I recommend running the Account QuickReport of the bad debts expense account. It helps you track all the receivables you tagged as bad debt. Just go to the Chart of Accounts menu and enter its name in the Search box. Then, click Run report from the Action column. 

Once done, let's use the Inventory qty adjustment option to update the number of your goods in the program. It helps you match what you have in actual stock. Here's how: 

1. Go to + New from the left menu and select Inventory qty adjustment under Other.
2. Enter the Adjustment Date.
3. Complete the details of the transaction.
4. Click Save and close.

QBO will automatically record appropriate adjustments to your Inventory Asset and Cost of Goods Sold under Inventory Shrinkage accounts. For your reference, check out this article: Adjusting Inventory Quantity On Hand. For the value of your finished goods, you can edit it by going to the Products and Services list. You can also run any inventory reports to help you get real-time inventory status in the program. 

If you're using QuickBooks Desktop (QBDT), let's add an expense account to track the bad debt. Then, close out the unpaid invoice by going to the Receive Payments screen. For the detailed steps, visit this article: Writing Off Bad Debt In QBDT. 

After that, let's adjust the total value and quantity of your finished goods. For more information, see this article's Step 3: Adjusting Inventory Quantity Or Value. 

You can always run the Inventory Valuation Summary from the Reports menu. It helps you review your inventory status and make sure everything is accurate in QBDT. You can also customize it to get the specific details you need according to your business needs. 

I'll lend a helping hand if you need anything else. Keep safe always, @Hareesh Kumar. 

Best regards, 

Raymond Jay