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

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