how does inentory write down work? How it increase COGS and reduce the carrying value of inventory? Thanks.
hw0799 Wrote: ------------------------------------------------------- > how does inentory write down work? How it increase > COGS and reduce the carrying value of inventory? > Thanks. You could DR COGS if the loss is relatively small. if it is a large writedown have a separate expense account such as “Inventory Writedowns”. for transparency I would use the seperate account. Whether you use COGS or a separate account the result is the same.