A.    No, only if you wish, you can do a journal entry to clear the account and charge it to any other account of your choice, e.g. COGS. 

The inventory adjustment account gathers information from the Cycle Count, Physical Inventory, and the cost rollup modules. The values entered are the offsets of the values actually made to inventory accounts. When we change the value of inventory by adding or removing value (either by change in standard cost or in inventory counts), we have to record the other side of that transaction somewhere, and it goes to this account.