Ask Experts Questions for FREE Help !
Ask
    Cavatina's Avatar
    Cavatina Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 3, 2008, 09:00 AM
    Inventory write-off method
    How does a company determine the dollar amount for obsolete inventory?

    It seems that some companies assign a percentage to an inventory category according to its sales trend - e.g. 50% to non-moving inventory and 25% to slowly-moving inventory. Is this the MOST COMMON method?

    How about write off everything that is over 2 years old?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #2

    Jul 12, 2009, 05:00 AM

    The most common method is to put the
    Obsolete stock in the dust bin or
    Better still ship it to the tip.
    You can determine exactly and literally what you write off.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Direct Write-Off Method and A/R [ 2 Answers ]

If I am using the Direct Write-Off method with a balance of A/R - $160,000.00 and am writing off $2400.00. My question is does the company expect to collect the full amount. I know with the Allowance method they have a net receivable which is a/r minus allowable and then the net they expect to...

Direct Write off method [ 1 Answers ]

Please tell me if I'm answering the following question correct. On May 1, EZ Plumbing buys materials with a list price of $550. At the time of the purchase, EZ gives Halpin a check for $225 and asks Halpin to put the remainder of the purchase on its account, which already has a balance of $475. On...

Direct write off method [ 1 Answers ]

Write -offs of uncollectible accounts receivable, $? Solve for the amount of write offs

Write off method [ 1 Answers ]

Sold merchandise on account at $11000 how to solve it

Direct Write Off Method [ 2 Answers ]

When you're using he direct write off method, do you decrease the AR balance and net income?

View more questions Search