a. Physical count of inventory on

December

31

showed

600

units of goods on hand, $5,592

Date			Accounts and Explanation	Debit	Credit
Dec. 31			Cost of Goods Sold	466
Adj. (a)			Merchandise Inventory		466
			Adjustment for inventory shrinkage.

Dec.	2	Purchased 500 units of inventory for $3,500 on account from Shiney, Co. onterms, 5/10, n/20.
	5	Purchased 700 units of inventory from Dirt Buster on account with terms 7/10, n/30. The total invoice was for $7,000, which included a $200 freight charge.
	7	Returned 300 units of inventory to Shiney from the December 2 purchase (cost $2,100).
	9	Paid Dirt Buster.
	11	Sold 150 units of goods to The Cleaners for $1,950 on account with terms 5/10, n/30. White Glove's cost of the goods was $1,050.
	12	Paid Shiney.
	15	Received 70 units with a retail price of $910 of goods back from customer The Cleaners. The goods cost White Glove $490.
	21	Received payment from The Cleaners, settling the amount due in full.
	28	Sold 170 units of goods to Brenda, Inc. for cash of $2,720 (cost $1,236).
	29	Paid cash for utilities of $300.
	30	Paid cash for Sales Commission Expense of $148.
	31	Recorded the following adjusting entries:
		a.	Physical count of inventory on December 31 showed 600 units of goods onhand, $5,592
		b.	Depreciation, $215
		c.	Accrued salaries expense of $1,500
		d.	Prepared all other adjustments necessary for December (Hint: You will need to review the adjustment information LOADING... from November to determine the remaining adjustments). Assume the cleaning supplies left at December 31 are $70.

How did we find 466?