Hi -Can an inventory adjustment reverse the item receipt GL impact and remove the qty from inventory?

As long as you pick the same (presumably COGS) account the item receipt uses, yes.

The GL impact is pulling the asset account tied to the item record, would that be the account to enter in for inventory adjustment?

The asset account would be your inventory account, it'll deduct/add to that based upon what is on the item record. The other half of the GL impact is selected at the top level of the inventory adjustment. It is more common for people to set up a particular COGS account to specifically handle inventory adjustments. If you want to exactly cancel a receipt, then look what the COGS account is of those items.