Retail
Inventory Damage — Insurance Claim Receivable
Recording stock destroyed by flooding and the corresponding insurance claim.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Insurance Claim Receivable | Asset (+) | 12,000.00 | - |
| Merchandise Inventory | Asset (-) | - | 15,000.00 |
| Loss on Inventory Damage | Expense (+) | 3,000.00 | - |
💡 Accountant's Note
The inventory loss and the insurance recovery are recorded separately. The loss is the full inventory value; the claim is what the insurer agrees to pay. Any shortfall is a net loss.
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