Question

How Do You Report A Write-down In Inventory?

Answer 1

If the amount of the Loss on Write-Down of Inventory is significant, it should be reported as a separate line on the income statement. Since the amount of the write-down of inventory reduces net income, it will also reduce the amount reported on the balance sheet for owner's equity or stockholders' equity.

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Answer 2

If the amount of the Loss on Write-Down of Inventory is significant, it should be reported as a separate line on the income statement