Hartley’s accounting records included the following information: Inventory, 01-01-13 $319,500 Purchases during 2013 (excluding shipping) $1,200,000 Purchase returns during 2013 $15,000 Freight-in on 2013 purchases $8,500 Sales during 2013 $1,998,750 Hartley completed a physical inventory on 12-31-13 and calculated an ending inventory of $525,000, at cost. In recent years, Hartley's gross profit equaled 105% of Hartley’s cost. Hartley suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.
Hartley’s accounting records included the following information:
Inventory, 01-01-13 $319,500
Purchases during 2013 (excluding shipping) $1,200,000
Purchase returns during 2013 $15,000
Freight-in on 2013 purchases $8,500
Sales during 2013 $1,998,750
Hartley completed a physical inventory on 12-31-13 and calculated an ending inventory of $525,000, at cost. In recent years, Hartley's gross profit equaled 105% of Hartley’s cost. Hartley suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.
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