Ray Blocker Sunglasses had the following FIFO perpetual inventory record at April 30, the end of the fiscal year.

A physical count of the inventory performed at year-end revealed $672.50 of inventory on hand.
Requirements
1. Journalize the adjusting entry for inventory, if any is required.
2. What could have caused the value of the ending inventory based on the physical count to be lower than the amount based on the perpetual inventory record?

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Purchases Unit Cost of Goods Sold Unit Inventory on Hand Unit Total Cost Quantity Cost Cost Quantity Cost Total Total Cost Date Quantity Cost Apr 1 Apr 3 150 $9.00 $1,350.00 $9.00 $1,350.00 150 $9.50 $1,425.00 $9.00 360.00 150 9.50 $1,425.00 $9.00 $ 360.00 150 $9.50 $1,425.00 $9.70 $1,067.00 90 $9.50 855.00 $9.70 $1,067.00 150 $9.50 $1,425.00 150 40 40 110 110 Apr 7 110 $9.00 S 990.00 Apr 13 110 9.70 $1,067.00 Apr 18 Apr 25 Apr 30260 40 $9.00 360.00 60 $9.50 S 570.00 90 $9.50 S 855.00 35 $9.70 339.50 $3,114.50 $2,492.00335 75 $9.70 727.50 727.50 75