Retail
Seasonal Markdown — Inventory Write-Down
Writing down winter clothing inventory at season-end to its expected clearance sale price.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory Write-Down Expense (COGS) | Expense (+) | 8,000.00 | - |
| Merchandise Inventory | Asset (-) | - | 8,000.00 |
💡 Accountant's Note
Under IAS 2, inventory must be reported at the lower of cost or NRV. At season-end, when a collection can only be sold at a significant discount, an NRV write-down is required before the next reporting date.
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