Here is my scenario that is pretty typical in the perishable goods industry: We have 100 cans of fruit that expire in 2 years which we bout for $100.00. Any left after 1/2 years, we must reduce below our cost to sell. For this reason we write down our inventory every quarter for the reduction in net realizable value. Lets assume that at 12/31/2015 we will have to reduce our inventory by 25%. We will still have 100 cants but now they will be valued at $75.00 and not $100.00, so our write off value is $25.00. If I use the Inventory adjustment journal, I am required to use quantity, but I do not want to write off any quantity. What is the best solution for this type of inventory value write down? Thank you in advance for you help.
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