Question

Loss on revaluation of inventory is recorded under which head

Answer 1

The debit in the entry to write down inventory is reported in an account such as Loss on Write-Down of Inventory, an income statement account. If the amount of the Loss on Write-Down of Inventory is relatively small, it can be reported as part of the cost of goods sold.

Answer 2

Answer:

If the revaluation is due to a decrease in the market value of your goods, then a loss will have to be recorded on your income statement, as well as be recorded as a write-down on the balance sheet.