A loss in inventory value caused by application of the lower of cost or net realizable value (LCNRV)rule is recorded in a "Loss from Impairment" account.

Question

Quizplus · Accepted Answer

The loss is typically recorded in a "Loss from Write-Down of Inventory" account or directly in the Cost of Goods Sold, not in a "Loss from Impairment" account, which is more commonly associated with long-term assets.

A Loss in Inventory Value Caused by Application of the Lower