Lower of Cost or Net Realizable Value Rule

In this session, I discuss Lower of Cost or Net Realizable Value Rule for inventory
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[@marcelinoarmuellesgordon6900]

Excellent explanation thanks

[@AccountingLectures]

You are welcome! Wat are you studying for? Please connect with me: linktr.ee/farhatlectures

[@SilverRose253]

In the allowance method, i would have expected the adj of 609 to go to other income and expenses not the COGS line. Therefore, i suppose there will be a difference in the P&L line for both methods, One will hit COGS so gross profit will be impacted, and with the other one, impact will be below GP line

[@bellakeremela1685]

Well detailed biginner friendly explanation 🤙

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@mahmoudshaaban-cm5tk]

In the second year we need provision 7000 you made entry 5000 built on balance of previous provision its balance 12k , although in first year we should deduct 12k of provision from inventory that means balance of inventory should be zero
Could you explain please sir ?

[@AditCPACARTX]

Is it right if I'm crediting Recovery of Inventory Loss instead of Gain or Other Revenue?

[@AccountingLectures]

It is the naming of the account but it is about the type of the account that you are using.

[@AditCPACARTX]

@@AccountingLectures Okay, thank you, Sir