If the item of inventory that had been previously written down has been sold, a reversal should be recorded.

Name: If the item of inventory that had been previously written down has been sold, a reversal should be recorded.
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Question

Quizplus · Accepted Answer

When an inventory item that had been previously written down is sold, the sale is recorded at the new, lower cost basis. There is no reversal of the write-down; instead, the reduced cost impacts the cost of goods sold and the resulting profit from the sale.

If the Item of Inventory That Had Been Previously Written