The loss from abnormal spoilage account would appear:

Question

Quizplus · Accepted Answer

The loss from abnormal spoilage is a revenue expense, which represents the cost of units of products that are spoiled in a way that is unusual or unexpected compared to normal levels of spoilage. As such, it should be reported as a detailed item on the income statement under operating expenses, and not on the balance sheet or retained earnings schedule, which do not reflect current-period revenue or expense items. Therefore, choice C is the best answer.

The Loss from Abnormal Spoilage Account Would Appear