Inventory Impairment: debit or credit?
Inventory Impairment increases on the credit side and decreases on the debit side: its normal balance is a credit.
A contra-asset reduces the value of an asset shown elsewhere, such as accumulated depreciation or an allowance. It increases with a credit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | — |
| Spain (PGC 2007) | 390 Deterioro de valor de las mercaderías |
| France (PCG 2025) | 397 Dépréciations des stocks de marchandises |
| Germany (generic accounts) | — |