Need financial accounting guidance - how to handle an inventory writedown - $100,000 of inventory from 2022 has decreased in value to $30,000. How do you account for this in 2023 - balance sheet, income statement, net income and retained earrings. The inventory is not obsolete just what we paid for it and what we can sell it for now is a big hit. Also going forward given the volatile raw materials used in this inventory should we move to a Just in time inventory or stay with average cost.