Obsolete/Damaged Inventory Expense
Code: 5117
👁 Views: 88
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Expense reflecting value of damaged or unsalable goods, offset by allowance for obsolete inventory on the balance sheet.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 2
Inventories
US GAAP
ASC 330
Inventory
❓ Frequently Asked Questions
Q: How is obsolete/damaged inventory expense recorded?
A: Dr. Obsolete/Damaged Inventory Expense, Cr. Allowance for Obsolete Inventory (or directly to inventory if immaterial).