Sarasota Ltd$.$ distributes olive oil to grocery stores and restaurants. At the end of October, Sarasota's inventory consists of $145$ one$-$

litre bottles of olive oil purchased at $$15$ per litre. Sarasota uses a perpetual inventory system. Return rates in food industry are

moderate, with Sarasota experiencing a $6\%$ return rate historically.

During the month of November, the following merchandise transactions occurred:

November $2$ Sold $110$ one$-$litre bottles of olive oil on account to Eatalia Grocery for $$30$ each, with an average cost of $$15.$

$4$ Purchased $210$ bottles of olive oil for $$10$ each from Ambrosia Oleum, terms n$/30.$

$8$ Purchased $210$ bottles on account for $$11$ each from EVOO, terms n$/30.$

$10$ Granted Eatalia a $$150$ credit for five bottles of olive oil returned to Sarasota. The bottles were restored to

inventory.

$13$ Received a $$110$ credit for $10$ bottles of olive oil returned to EVOO.

$14$ Sold $40$ bottles of olive oil on account to Mezes Restaurant for $$40$ each, with an average cost of $$11,$ terms

$\frac{n}{30}.$

$16$ Issued a $$120$ credit memorandum to Eatalia Grocery for the return of four bottles of olive oil. The bottles were

not returned to inventory as it was past the best before date.

$18$ Received payment in full from Eatalia Grocery.

$24$ Paid EVOO in full.

$26$ Received payment in full from Mezes.

$30$ Sold $50$ bottles to La Bodega Grocery for $$26$ each, with an average cost of $$11,$ terms n$/30.($d$)$

When Sarasota counted its inventory on November $30,$ it determined that there were $360$ bottles of olive oil with a total cost of

$$3,780.$ Record the adjusting entry for the inventory theft or shrinkage. $($List debit entry before credit entry. Credit account

titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select

$"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Nov.

$30$