USA Inventory adjustment of scrap parts

[roxanna9]

Hi,

I work with sage 50. I have received a list of scrap parts that have been already adjusted in inventory. Besides those adjustments, do I have to post an entry journal for the value of the loss? If it is so, the journal would be: debit "scrap/inventory adjustments ( expense account) and credit : _____? inventory?

I will appreciate your help, thank you

 

[Dada Olayemi]

I think if there is a scrap, and it has been sold...what you have to do is to calculate gain or loss on disposal...by deducting from the sales price the carrying amount as at the date of sale....the profit or loss will be credited(if a gain) or debited(if a loss) then credit inventory with the carrying amount of the asset sold....then finally debit cash/bank for cash received .

But if it is writing down value of inventory, Dr p or l with the reduced amount, then credit the inventory to reduce the value of the inventory.

 

[ttreacy]

Hi,

I work with sage 50. I have received a list of scrap parts that have been already adjusted in inventory. Besides those adjustments, do I have to post an entry journal for the value of the loss? If it is so, the journal would be: debit "scrap/inventory adjustments ( expense account) and credit : _____? inventory?

I will appreciate your help, thank you

Roxanna9 - you would want to Credit the Inventory account that the scrap was adjusted out of, in order to reconcile that inventory acct.