Question

hlo guys


what is inventory fluctuation reserve???​

Answer 1

$\huge{\mathfrak\purple{What \: is \: inventory \: fluctuation \: reserve?}} </p><p>$

An inventory reserve is a contra asset account on a company's balance sheet made in anticipation of inventory that will not be able to be sold.

Inventory reserve is an estimation of future inventory spoilage based on the company's past experiences.

Khadijah21

Answer 2

Answer:

An inventory reserve is a contra asset account on a company's balance sheet made in anticipation of inventory that will not be able to be sold. Every year, a company has an inventory that will not be able to be sold for various reasons. It may spoil, fall out of fashion, or become technologically obsolete.