Manufacturing
Impairment of Specialized Tooling
Writing off the value of molds or tools because the specific product they make has been discontinued.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loss on Impairment | Expense (+) | 4,000.00 | - |
| Accumulated Impairment (Tooling) | Contra-Asset (+) | - | 4,000.00 |
💡 Accountant's Note
If a tool can only make 'Product X' and you stop selling 'Product X,' that tool is worthless regardless of its physical condition. This is a permanent loss.
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