I need helping figuring out how the financial statements would be adjusted after something like this occurs. Would someone be able to explain how I would figure that out please?

Here is what I have written so far:

1. Both the income statement and the balance sheet will need to updated following the theft of the two TVs. The inventory balance shown in the balance sheet will need to be reduced by $800, as it was two $400 TVs that were stolen. Then they will need to credit that amount to the inventory account. On the income statement, because it was a loss of inventory, this would reflect on the statement as an expense.

One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.

One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last time they were in the warehouse was a week earlier, and they hadnt noticed anything amiss.

As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse worker were gone for the day, and the delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were open, as was the door to the office area where the accountant, two customer service specialists, and the owner worked.

Knowing that you are familiar with accounting principles, they asked for your help in figuring out how to prevent this in the future.

If you found that two $400 HD televisions were missing, explain which financial statements you would correct and how. Be specific as to accounts and amounts.