Question

stock written off has been added back in order to show the stock at its​

Answer 1

What Is an Inventory Write-Off?

What Is an Inventory Write-Off?An inventory write-off is an accounting term for the formal recognition of a portion of a company's inventory that no longer has value. An inventory write-off may be recorded in one of two ways. It may be expensed directly to the cost of goods sold (COGS) account, or it may offset the inventory asset account in a contra asset account, commonly referred to as the allowance for obsolete inventory or inventory reserve.

What Is an Inventory Write-Off?An inventory write-off is an accounting term for the formal recognition of a portion of a company's inventory that no longer has value. An inventory write-off may be recorded in one of two ways. It may be expensed directly to the cost of goods sold (COGS) account, or it may offset the inventory asset account in a contra asset account, commonly referred to as the allowance for obsolete inventory or inventory reserve.KEY TAKEAWAYS

What Is an Inventory Write-Off?An inventory write-off is an accounting term for the formal recognition of a portion of a company's inventory that no longer has value. An inventory write-off may be recorded in one of two ways. It may be expensed directly to the cost of goods sold (COGS) account, or it may offset the inventory asset account in a contra asset account, commonly referred to as the allowance for obsolete inventory or inventory reserve.KEY TAKEAWAYSAn inventory write-off is the formal recognition of a portion of a company's inventory that no longer has value.

What Is an Inventory Write-Off?An inventory write-off is an accounting term for the formal recognition of a portion of a company's inventory that no longer has value. An inventory write-off may be recorded in one of two ways. It may be expensed directly to the cost of goods sold (COGS) account, or it may offset the inventory asset account in a contra asset account, commonly referred to as the allowance for obsolete inventory or inventory reserve.KEY TAKEAWAYSAn inventory write-off is the formal recognition of a portion of a company's inventory that no longer has value.Write-offs typically happen when inventory becomes obsolete, spoils, becomes damaged, or is stolen or lost.