Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance of $250,000, but a physical count shows that the merchandise on hand has a cost of only$246,000.a. Explain the probable reason(s) for this discrepancy.b. Prepare the journal entry required in this situation.c. Indicate all the accounting records to which your journal entry in part b should be posted.
Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance of $250,000, but a physical count shows that the merchandise on hand has a cost of only$246,000.a. Explain the probable reason(s) for this discrepancy.b. Prepare the journal entry required in this situation.c. Indicate all the accounting records to which your journal entry in part b should be posted.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 3E: Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A...
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Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a
balance of $250,000, but a physical count shows that the merchandise on hand has a cost of only
$246,000.
a. Explain the probable reason(s) for this discrepancy.
b. Prepare the
c. Indicate all the accounting records to which your journal entry in part b should be posted.
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