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3-a. What is the dollar amount of shrinkage that you were able to determine in periodic inventory system? 3-b. What is the dollar amount of shrinkage that you were able to determine in perpetual inventory system? Amount of shrinkage Periodic inventory system Perpetual inventory system

3-a. What is the dollar amount of shrinkage that you were able to determine in periodic inventory system? 3-b. What is the dollar amount of shrinkage that you were able to determine in perpetual inventory system? Amount of shrinkage Periodic inventory system Perpetual inventory system

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**3-a.** What is the dollar amount of shrinkage that you were able to determine in the periodic inventory system? **3-b.** What is the dollar amount of shrinkage that you were able to determine in the perpetual inventory system? **Table: Shrinkage Analysis** | Inventory System | Amount of Shrinkage | |------------------------------|---------------------| | Periodic inventory system | | | Perpetual inventory system | | *Explanation:* The table presents two types of inventory systems—periodic and perpetual—and provides a space to input the dollar amount of shrinkage identified in each system. Shrinkage refers to the loss of inventory that can occur due to factors like theft, loss, damage, or administrative error.
Transcribed Image Text:**3-a.** What is the dollar amount of shrinkage that you were able to determine in the periodic inventory system? **3-b.** What is the dollar amount of shrinkage that you were able to determine in the perpetual inventory system? **Table: Shrinkage Analysis** | Inventory System | Amount of Shrinkage | |------------------------------|---------------------| | Periodic inventory system | | | Perpetual inventory system | | *Explanation:* The table presents two types of inventory systems—periodic and perpetual—and provides a space to input the dollar amount of shrinkage identified in each system. Shrinkage refers to the loss of inventory that can occur due to factors like theft, loss, damage, or administrative error.
### Required Information **[The following information applies to the questions displayed below.]** Home Hardware reported a beginning inventory of 35 shovels, for a total cost of $175. The company had the following transactions during the month: - **January 2**: Sold 9 shovels on account at a selling price of $10 per unit. - **January 16**: Sold 12 shovels on account at a selling price of $10 per unit. - **January 18**: Bought 4 shovels on account at a cost of $5 per unit. - **January 19**: Sold 12 shovels on account at a selling price of $10 per unit. - **January 24**: Bought 12 shovels on account at a cost of $5 per unit. - **January 31**: Counted inventory and determined that 15 units were on hand.
Transcribed Image Text:### Required Information **[The following information applies to the questions displayed below.]** Home Hardware reported a beginning inventory of 35 shovels, for a total cost of $175. The company had the following transactions during the month: - **January 2**: Sold 9 shovels on account at a selling price of $10 per unit. - **January 16**: Sold 12 shovels on account at a selling price of $10 per unit. - **January 18**: Bought 4 shovels on account at a cost of $5 per unit. - **January 19**: Sold 12 shovels on account at a selling price of $10 per unit. - **January 24**: Bought 12 shovels on account at a cost of $5 per unit. - **January 31**: Counted inventory and determined that 15 units were on hand.
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