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how to account for unsaleable items?

T accounts
? Unsaleable items = inventory adjustment ie lower of cost or NRV


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Reply 2
Sorry, I wasn't very clear. I have the trial balance for the company at the end of the year plus additional information. The additional info gave me a figure for closing inventory at the end of the year and also stated that 5% of this was not in saleable condition. So, my question is how do I show that in T accounts? Do take 5% off of closing inventory then work out cost of goods sold? Or do I work out cost of goods sold and take 5% to a disposals acc?
Calculate level of inventory write down & then Dr cost of sales , Cr closing inventory


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