ILLMAS Posted October 10, 2019 Report Share Posted October 10, 2019 Let's a say a grocery store has 10 cans of creamed possum in inventory as of 12/31/17, in 2018 the department of health picks up a can finds that all 10 cans have expired and asks to be throw away. Is this a good example of spoilage? Thanks 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 10, 2019 Report Share Posted October 10, 2019 As a practical matter, when inventory becomes unsaleable and is thrown out, it's not counted in the next Physical Inventory or if a perpetual inventory is being used the disposition of the inventory is recorded. Spoilage or shrinkage is really a cost accounting measure used in order to keep better track of COGS & Gross Profit. Where as Inventory Write Downs i.e. Lower of Cost or Market is both a cost accounting measure and a tax deduction. 4 Quote Link to comment Share on other sites More sharing options...
Elrod Posted October 10, 2019 Report Share Posted October 10, 2019 I'm not sure ILLMAS, if you are asking a real accounting question......But....Here is some real Spoiled Possum.... In fact I hand a bad can of out dated possum, last Halloween ( October is bad month for me)...This is what happened.... This doctor made me all better though.... 2 4 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 16, 2019 Report Share Posted October 16, 2019 you have too much time - come do some taxes for me! 1 Quote Link to comment Share on other sites More sharing options...
Elrod Posted October 16, 2019 Report Share Posted October 16, 2019 13 hours ago, WITAXLADY said: you have too much time - come do some taxes for me! I would WITALADY, but it's been 10 years since I've done any tax prep. I think you'd get a lot madder at my mistakes, than my sideways humor. I'm Just trying to be kind to everyone..... 3 Quote Link to comment Share on other sites More sharing options...
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