classification of products on display

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James Werner
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classification of products on display

hello,

are products that are on display in the store classified as part of inventory if they're not eventually sold?

thanks

Jason Pride
Jason Pride's picture

Generally, all finished goods in the warehouse, in transit, or on display are considered to be in finished good inventory until sold. However, this is not always true. Some firms choose to classify display models under a special account as a means of recognizing that the display model will lose value compared to other models on the shelf. This is seen largely with electronics where open box items lose value quickly.