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Home Hardware reported beginning inventory of thirty shovels, for a total cost of $150. The company had the following transactions during the month: Jan. 2
Home Hardware reported beginning inventory of thirty shovels, for a total cost of $150. The company had the following transactions during the month:
Jan. | 2 | Sold 10 shovels on account at a selling price of $12 per unit | ||
16 | Sold 16 shovels on account at a selling price of $12 per unit | |||
18 | Bought 11 shovels on account at a cost of $5 per unit | |||
19 | Sold 13 shovels on account at a selling price of $12 per unit | |||
24 | Bought 16 shovels on account at a cost of $5 per unit | |||
31 | Counted inventory and determined that 14 units were on hand |
Required: 1. Prepare the journal entries that would be recorded using a periodic inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3-a. What is the dollar amount of shrinkage that you were able to determine in requirement 1? (Enter "0" if you were unable to determine the dollar amount of shrinkage.)
3-b. What is the dollar amount of shrinkage that you were able to determine in requirement 2? (Enter "0" if you were unable to determine the dollar amount of shrinkage
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