An Asset Write Off Journal Entry is an accounting entry used to record the permanent reduction of an asset’s value due to damage or obsolescence. This kind of journal entry is typically initiated by a business owner when the cost for repairing an asset or replacing it with something new turns out to be more expensive than writing off its present value. While the asset is no longer useful to the company, the loss in value is still referred to as an expense, which businesses must take into account and include in their financial reports. Making this journal entry requires careful consideration of the asset’s original purchase price, how long it has been used, and what its current market value is.