Write Down of Inventory Journal Entries

The write down of inventory journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of inventory write downs.

In each case the write down of inventory journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section.

Typical Write Down of Inventory Journal Entries


To write down obsolete inventory
Account Debit Credit
Loss on inventory write down XXX
Allowance for obsolete inventory XXX

To write off inventory
Account Debit Credit
Loss on inventory write down XXX
Inventory XXX

To write off inventory using a fully provided obsolescence allowance
Account Debit Credit
Allowance for obsolete inventory XXX
Inventory XXX

To write off inventory using a partially provided obsolescence allowance
Account Debit Credit
Allowance for obsolete inventory XXX
Cost of goods sold account XXX
Inventory XXX

To dispose of obsolete inventory at net book value for cash
Account Debit Credit
Cash XXX
Inventory XXX
Allowance for obsolete inventory XXX

To dispose of obsolete inventory at a loss on net book value for cash
Account Debit Credit
Cash XXX
Inventory XXX
Allowance for obsolete inventory XXX
Cost of goods sold XXX

To dispose of obsolete inventory at a profit on net book value for cash
Account Debit Credit
Cash XXX
Inventory XXX
Allowance for obsolete inventory XXX
Cost of goods sold XXX
Write Down of Inventory Journal Entries November 6th, 2016Team

You May Also Like


Related pages


day books in accountingunearned rent revenue balance sheetcheque received from debtor journal entrycreditors journal entryaccounts payable ledger templatecash flow margin ratio analysisunearned rent debit or creditsimple bookkeeping spreadsheetcash ledger exampleformula for profit margin ratiowhat is the formula for total variable costallowance doubtful accountsstock issuance journal entrypaid creditor on account journal entrylink between balance sheet and income statementbookkeeping formulabalance sheet vertical analysiscalculate receivables turnoveraccounts receivable turnover ratio exampleaccounting ledger entriescash withdrawal from bank journal entry in tallyfundamental accounting equation problems and solutionsmerchandise inventory beginninghow to calculate underapplied overheadrecording unearned revenuedefine sundry expensescontrollable marginaccrual accounting versus cash accountingcalculating pvexamples of prepaid expensesimpairment intangible assetssofp accountingdepreciation equationdef of suspensereturns outwardsformula for ending inventorydouble declining balance method depreciationworksheet trial balance and adjustmentsstraight line formula accountingcvp equationaccounting objectivity principleaccounting equation templatequarterly interest rate formulanoncontrollable costscalculate contribution marginbank overdraft in balance sheetsample excel spreadsheet for accountinghistory of double entry bookkeepingaccruals and prepayments double entryonline tvm calculatordouble declining balance depreciation examplewhat is a post closing trial balancepurchase ledger reconciliationjournalizing accounting exampleperpituity formulapayment formula excelgross profit markup calculatorwhat is sunk cost in accountingwhat is days sales in receivablesvertical analysis of a balance sheetactivity based costing formuladirect labor cost variance formulapv table annuitycash profit ratio formulastock repurchase journal entryaccounting for debt factoringloan constant calculatorledger entry in accountingdebt to equity ratio explanationwrite off obsolete inventorysales return ratiodepreciation entries for fixed assetsearning statement template