What are some causes of inventory shrinkage

Assignment Help Accounting Basics

Reference no: EM131527575

Question: Assume that Bernard Office Equipment in Question 1 experienced an abnormal inventory shrinkage of $315,750. It has decided to record the abnormal inventory shrinkage so that it would be separately disclosed on the income statement. What account would be debited for the abnormal inventory shrinkage?

1. Bernard Office Equipment, which uses a perpetual inventory system, experienced a normal inventory shrinkage of $19,290.

(a) What accounts would be debited and credited to record the adjustment for the inventory shrinkage at the end of the accounting period?

b) What are some causes of inventory shrinkage?

Reference no: EM131527575

Questions Cloud

What is the corporation current operating income : ABC Corporation makes three different products. What is the corporation's current operating income. What is the corporation's over-all break-even point

What are some causes of inventory shrinkage : Bernard Office Equipment, which uses a perpetual inventory system, experienced a normal inventory shrinkage of $19,290.

Needs analysis to assess the network access : You have conducted a needs analysis to assess the network access needs of the business you are working with.

Prepare a word document of the political structure : Using Apple and United Arab Emirates. Prepare a Word document of the political structure and economic environment.

What are some causes of inventory shrinkage : Assume that Bernard Office Equipment in Question 1 experienced an abnormal inventory shrinkage of $315,750. It has decided to record the abnormal inventory.

Explain the balance sheet equation : A guide to financial reporting, explain the balance sheet equation in 300 words or less. Incorporate this explanation into your complete initial post.

Determine the gross profit as a percent of net sales : CVS Corporation operates drugstores throughout the United States, selling prescription drugs, general merchandise, cosmetics, greeting cards, food.

Segmentation fault by overflowing a buffer : Explain one of the challenges that a hacker faces when attempting to cause a segmentation fault by overflowing a buffer.

What event or series of events has impacted you : What event or series of events has impacted you and your life the most? Why? How might your life be different if this event or events never happened?

User Account

All Pages