Frigid Supplies reported beginning inventory of 200 units, for a total cost of $2,000. The companyhad the following transactions during the month:Jan. 3 Sold 20 units on account at a selling price of $15 per unit.6 Bought 30 units on account at a cost of $10 per unit.16 Sold 30 units on account at a selling price of $15 per unit.19 Sold 20 units on account at a selling price of $20 per unit.26 Bought 10 units on account at a cost of $10 per unit.31 Counted inventory and determined that 160 units were on hand.Required:1. Prepare the journal entries that would be recorded using a periodic inventory system.2. Prepare the journal entries that would be recorded using a perpetual inventory system,including any “book-to-physical” adjustment that might be needed.TIP: Adjust for shrinkage by decreasing Inventory and increasing Cost of Goods Sold.3. What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1,and (b) requirement 2? Enter CD (cannot determine) if you were unable to determine the dollar amount of shrinkage.
Frigid Supplies reported beginning inventory of 200 units, for a total cost of $2,000. The company
had the following transactions during the month:
Jan. 3 Sold 20 units on account at a selling price of $15 per unit.
6 Bought 30 units on account at a cost of $10 per unit.
16 Sold 30 units on account at a selling price of $15 per unit.
19 Sold 20 units on account at a selling price of $20 per unit.
26 Bought 10 units on account at a cost of $10 per unit.
31 Counted inventory and determined that 160 units were on hand.
Required:
1. Prepare the
2. Prepare the journal entries that would be recorded using a perpetual inventory system,
including any “book-to-physical” adjustment that might be needed.
TIP: Adjust for shrinkage by decreasing Inventory and increasing Cost of Goods Sold.
3. What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1,
and (b) requirement 2? Enter CD (cannot determine) if you were unable to determine the dollar amount of shrinkage.
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