topic Obsolescence Expense for Inventory Reserve Account in Get your taxes done using TurboTax

Obsolescence Expense for Inventory Reserve Account

ihikaru — Thu, 06 Feb 2025 17:17:26 GMT

Hello,

Its end of year and have inventory that has become slow moving/obsolete that we need to adjust the value. We are crediting each department inventory reserve a dollar amount and debiting our Inventory obsolescence expense account that same amount. Our balance sheet shows the expense account under the COGS and a negative amount to get our net inventory value.

What I need help with is on turbotax I can not find a place to put it in "Other Production-Related Costs" or is it already accounted for with ending inventory value?

Re: Obsolescence Expense for Inventory Reserve Account

KeshaH — Fri, 07 Feb 2025 14:41:59 GMT

You can just adjust your Ending Inventory amount to account for the obsolete inventory. That will increase your Cost of Goods Sold.

Re: Obsolescence Expense for Inventory Reserve Account

ihikaru — Wed, 12 Feb 2025 12:22:19 GMT

Thank you.