GP 53 - Sales/ Purchases / Inventory Shrinkage Related Transactions - Sherwood, Inc. Instructions: 1. Joumalize the transactions below. A perpetual inventory system is used Post the journal entries to the Inventory account Dec 15 Purchased merchandise from Flannery, Inc. $S6,000, terms FOB destination 2/10, 45. 21 Sold merchandise on account to Weimer Co., 59 000, terms FOB shipping point, 110, 1/30 The cost of merchandise sold was $6 300. 23 Paid Flannery, Inc for invoice of December 15. less discount 30 Received payment from Weimer Co, for the invoice dated December 21, less discount 1 Adjusting entry: A physical count of the merchandise mventory indicates that $1,021,300 of inventory is actually on hand Note: You need to know the balance in Inventory to calculate this entry, therefore, post the preceding entries that involve Inventory Bal Inventory 980,000 GENERAL JOURNAL DESCRIPTION POST Page CREDIT CE s M *