i want to create an account for "Lost Packages" but im not sure if its supposed to be an expense account or maybe some other type of account. Can someone help with this?

What do you want that account to do? Will the packages ever be found? Will you be compensated by the carrier?

some of them will be compensated by the carrier, but for the majority we just take the hit. We want to capture total losses over a certain period of time.

To me that looks like an Expense Account.

thank you