The loss due to write-down of inventory should be reported on the income statement as an expense.

Name: The loss due to write-down of inventory should be reported on the income statement as an expense.
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Quizplus · Accepted Answer

When inventory is written down, it is recorded as an expense on the income statement, which reduces net income and ultimately the retained earnings of the company. This is done to reflect the decline in the value of the inventory and to accurately portray the financial health of the company.

The Loss Due to Write-Down of Inventory Should Be Reported