E-commerce
Inventory Write-Down to Net Realizable Value
Reducing the value of inventory when the selling price falls below its cost (e.g., electronics, fashion).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory Write-Down Expense | Expense (+) | 3,000.00 | - |
| Merchandise Inventory | Asset (-) | - | 3,000.00 |
💡 Accountant's Note
Under IAS 2, inventory must be reported at the lower of cost or NRV. For fast-moving e-commerce categories like electronics or fashion, price drops can quickly push NRV below cost.
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