Día: 1 de junio de 2022

These items have typically been replaced in the marketplace by more advanced or inexpensive goods, so there is no longer any demand for them. Since these goods cannot be used, their cost is either written off or written down. A write off completely eliminates the inventory asset from the accounting records, while a write down reduces the amount of the recorded asset to the price at which it can still be sold. The transaction will not impact the income statement as well as the net balance of inventory. Inventory is…

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The process of the disposal of these obsolete inventory goods is to discard them completely as they no longer have value on the market. Sometimes, even we can sell the obsolete inventory goods for a low price, selling them may make us lose more money. Hence, disposing of those obsolete inventory goods by discarding them completely may be a logical action sometimes. In this article, we’ll show you how to record a provision for obsolete inventory, so you can clear out the clutter and keep your financial statements in tip-top…

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