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New Member
posted Oct 29, 2019 8:41:40 PM

In clothing retail how do I calculate the value of old clothing that has depreciated in value

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New Member
Oct 29, 2019 8:41:41 PM

In accounting for inventory, original cost is critical.  You can't decrease the original cost.  You can write down the value of your inventory using the original cost by removing certain items for damage, shrinkage (theft), promotion (give away) etc.

The entry would be minus inventory and plus cost of goods or plus shrinkage or plus promo.

You might sell goods for less than the original cost to clear old stock, which reduces your gross profit, but what you paid for it remains the same.

1 Replies
New Member
Oct 29, 2019 8:41:41 PM

In accounting for inventory, original cost is critical.  You can't decrease the original cost.  You can write down the value of your inventory using the original cost by removing certain items for damage, shrinkage (theft), promotion (give away) etc.

The entry would be minus inventory and plus cost of goods or plus shrinkage or plus promo.

You might sell goods for less than the original cost to clear old stock, which reduces your gross profit, but what you paid for it remains the same.