Retail
Physical Disposal of Obsolete Inventory
Removing items from the warehouse that were previously 'reserved' for obsolescence.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Allowance for Obsolescence | Contra-Asset (-) | 150.00 | - |
| Merchandise Inventory | Asset (-) | - | 150.00 |
💡 Accountant's Note
This entry happens when you actually throw the items in the trash. It clears both the inventory account and the provision (allowance) account you created earlier.
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