Sunglass Bungalow had the following FIFO perpetual inventory record at April 30, the end of the fiscal year.

A physical count of the inventory performed at year end revealed $64.75 of inventory on hand.

Requirements
1. Journalize the adjusting entry for inventory, if any is required.
2. What could have caused the value of the ending inventory based on the physical count to be lower than the amount based on the perpetual inventoryrecord?

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Purchases Unit Cost of Goods Sold Unit Inventory on Hand Unit Total Total Date Quantity Cost Apr 1 Apr 3 Cost Quantity Cost Cost Quantity Cost Cost 13 180 180 $9.00 $1,620.00 $9.00 $1,620.00 110 $9.10 $1.001.00 $9.00 180.00 $9.10 $1,001.00 $9.00 180.00 $9.10 $1,001.00 $9.25 740.00 20 $9.10 S 182.00 $9.25 740.00 110 $9.10 $1,001.00 Apr 7 160 9.00 $1,440.00 110 Apr 13 80 $9.25 740.00 20 80 80 Apr 18 Apr 25 Apr 30 20 $9.00 S 180.00 90 $9.10 819.00 20 $9.10 S 182.00 9.25 S 64750 $3,268.50 | 10| S925 IS 92.50 S 92.50 190 $1,741.00 360 10