Home Hardware reported beginning inventory of 20 shovels, for a total cost of $100. The company had the following transactions during the month:

Jan. 2	Sold 4 shovels on account at a selling price of $10 per unit.
Jan. 16	Sold 10 shovels on account at a selling price of $10 per unit.
Jan. 18	Bought 5 shovels on account at a cost of $5 per unit.
Jan. 19	Sold 10 shovels on account at a selling price of $10 per unit.
Jan. 24	Bought 10 shovels on account at a cost of $5 per unit.
Jan. 31	Counted inventory and determined that 10 units were on hand.

Required:

Prepare the journal entries that would be recorded using periodic inventory system.

Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed.

What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1, and (b) requirement 2? Enter CD (cannot determine) if you were unable to determine the dollar amount of shrinkage.