Damaging out Testers/Broken Items

Hello,
I often have to damage out items / Testers or sometimes when testers of some candles run out I have to damage out the candles. This isn't a vendor return.
I was told a while ago to create a testers/damage credit account (for like $1M dollars) - and I ring the items up like this and use the credit. It allows me to at least account for the loss?
This is a decent work around but just wondering how other folx might do this?
1 comment
We don't use that method as it adds an extra step for deducting that loss when it comes to taxes.
Our method:
I believe this is a superior method to creating an account with a credit limit.
The one major flaw, and it applies to the Lightspeed recommended method too, is in regards to sales reports. While your profits and cost of goods sold will be accurate with my method, it will still show up as a sale. For most people this probably is not a huge issue, but if there is a candle that is constantly tested and rarely bought you may be led to believe it is selling a lot better than it actually is.
Curious to hear other thoughts on my method...