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Tag: inventory

  • How an Inventory Write-Down Affects the Three Statements

    How an Inventory Write-Down Affects the Three Statements

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    by

    Dennis Smith
    in

    Inventory write-downs are a common occurrence in the business world. They happen when a company’s inventory is worth less than its recorded value on the balance sheet. This can happen for a variety of reasons, such as spoilage, obsolescence, or damage. When this occurs, the company must adjust its financial statements to reflect the new,…