How do I account for inventory that comes directly from a Shareholder - I have set up a shareholder inventory account but do not know what the other side of the entry should be. This is a corporation?

It depends. What is the shareholder getting in return? Is payment expected? Is stock being issue? The specific inventory asset probably doesn't need to be identified separately as shareholder inventory.

If there is no stock or repayment expected then it should probably go to the Equity Account "Paid in Capital". But, this is a good question to ask your CPA.