Retail
Inventory NRV Write-Down
Writing down the value of inventory when net realizable value falls below cost.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory Write-Down Expense | Expense (+) | 6,000.00 | - |
| Merchandise Inventory | Asset (-) | - | 6,000.00 |
💡 Accountant's Note
Under IAS 2, inventory must be reported at the lower of cost or NRV. This is especially relevant for fashion, electronics, and perishable goods where market prices can drop quickly.
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