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    This Study Resource Was: Inventory Shrinkage Perpetual Inventory

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    Hassan Sardar Khattak
    Paragon Tire Co. recorded an adjusting entry on March 31, 2019 to decrease merchandise inventory and increase cost of goods sold for a $38,570 difference between the perpetual inventory records and the physical inventory count. The physical inventory was $38,570 less than the perpetual records, indicating merchandise shrinkage. An adjusting entry was made to match the financial records to the physical inventory.

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    This Study Resource Was: Inventory Shrinkage Perpetual Inventory

    Uploaded by

    Hassan Sardar Khattak
    60 views1 page
    Paragon Tire Co. recorded an adjusting entry on March 31, 2019 to decrease merchandise inventory and increase cost of goods sold for a $38,570 difference between the perpetual inventory records and the physical inventory count. The physical inventory was $38,570 less than the perpetual records, indicating merchandise shrinkage. An adjusting entry was made to match the financial records to the physical inventory.

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    Chapter_6_HW_P.4.pdf

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    Paragon Tire Co. recorded an adjusting entry on March 31, 2019 to decrease merchandise inventory and increase cost of goods sold for a $38,570 difference between the perpetual inventory records and the physical inventory count. The physical inventory was $38,570 less than the perpetual records, indicating merchandise shrinkage. An adjusting entry was made to match the financial records to the physical inventory.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    60 views1 page

    This Study Resource Was: Inventory Shrinkage Perpetual Inventory

    Uploaded by

    Hassan Sardar Khattak
    Paragon Tire Co. recorded an adjusting entry on March 31, 2019 to decrease merchandise inventory and increase cost of goods sold for a $38,570 difference between the perpetual inventory records and the physical inventory count. The physical inventory was $38,570 less than the perpetual records, indicating merchandise shrinkage. An adjusting entry was made to match the financial records to the physical inventory.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    6/23/20, 12:12 PM

    Adjusting Entry for Merchandise Inventory Shrinkage

    Paragon Tire Co.'s perpetual inventory records indicate that $771,500 of merchandise should be on hand on March
    31, 2019. The physical inventory indicates that $732,930 of merchandise is actually on hand.

    Journalize the adjusting entry for the normal inventory shrinkage for Paragon Tire Co. for the year ended March
    31, 2019.

    ✔
    Cost of Merchandise Sold ✔ 38,570

    ✔
    Merchandise Inventory ✔ 38,570

    m
    er as
    co
    eH w
    Feedback

    o.
    Check My Work
    rs e
    ou urc
    Inventory shrinkage is recorded by decreasing merchandise inventory and increasing cost of merchandise
    sold for the difference between the perpetual inventory records and the physical inventory on hand.
    o

    Post-Submission
    aC s

    Inventory shrinkage ($771,500 – $732,930) = $38,570


    vi y re

    Solution

    Adjusting Entry for Merchandise Inventory Shrinkage


    ed d

    Paragon Tire Co.'s perpetual inventory records indicate that $771,500 of merchandise should be on hand
    ar stu

    on March 31, 2019. The physical inventory indicates that $732,930 of merchandise is actually on hand.

    Journalize the adjusting entry for the normal inventory shrinkage for Paragon Tire Co. for the year ended
    sh is

    March 31, 2019.


    Th

    Cost of Merchandise Sold 38,570

    Merchandise Inventory 38,570

    No Check My Work uses

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