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Question 6.6: Inventory Shrinkage Pulmonary Company’s perpetual inventory ......

Inventory Shrinkage

Pulmonary Company’s perpetual inventory records indicate that $382,800 of merchandise should be on hand on March 31, 2012. The physical inventory indicates that $371,250 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended March 31, 2012. Assume that the inventory shrinkage is a normal amount.

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Mar.  31  Cost of Merchandise Sold .  . . . . . . . . . . . . . . . . . . .    11,550

        Merchandise Inventory . . . . . . . . . . . . . . . . . . . . . .                      11,550

Inventory shrinkage ($382,800 – $371,250)

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