Need financial accounting guidance - how to handle an inventory writedown - $100,000 of inventory from 2022
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Need financial accounting guidance - how to handle an inventory writedown - $100,000 of inventory from 2022 has decreased in value to $30,000. How do you account for this in 2023 - balance sheet, income statement, net income and retained earrings. The inventory is not obsolete just what we paid for it and what we can sell it for now is a big hit. Also going forward given the volatile raw materials used in this inventory should we move to a Just in time inventory or stay with average cost.
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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