whats the journal entry for damaged goods
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Explanation:Set up an inventory write-off expense account to record the value of the damaged inventory. Every time you make an entry in the inventory write-off expense account, you reduce the amount of inventory carried on the books. Debit the cost of goods sold (COGS) account and credit the inventory write-off expense account.
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When goods are destroyed by fire, then the "Loss by fire A/c" is debited and "Purchases A/c" is credited. The goods destroyed by fire is considered to be loss for the business and is classified as a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited.
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