Inventory Shrinkage: It represents the loss of inventory. In other words, it refers to the difference between the amount of inventory shown in the accounting records and the actual inventory. The difference indicates the issues with the inventory caused due to lost, theft, clerical errors, damaged goods or spoilage. In this case Company T is pressuring the accounting department to increase the earnings. Ms. M is an accountant in Company T. Ms. M’s boss already informed her that if the earnings will not increase then he will be terminated. After the end of the fiscal year Ms. M compares the physical count to the balance in the inventory account, and finds a huge amount of inventory shrinkage. This amount is so huge that the earnings will drop significantly. Ms. M’s boss requests her to not to make any adjusting entry for the inventory shrinkage. To Explain: The action of Ms. M for the above situation and its reason.
Inventory Shrinkage: It represents the loss of inventory. In other words, it refers to the difference between the amount of inventory shown in the accounting records and the actual inventory. The difference indicates the issues with the inventory caused due to lost, theft, clerical errors, damaged goods or spoilage. In this case Company T is pressuring the accounting department to increase the earnings. Ms. M is an accountant in Company T. Ms. M’s boss already informed her that if the earnings will not increase then he will be terminated. After the end of the fiscal year Ms. M compares the physical count to the balance in the inventory account, and finds a huge amount of inventory shrinkage. This amount is so huge that the earnings will drop significantly. Ms. M’s boss requests her to not to make any adjusting entry for the inventory shrinkage. To Explain: The action of Ms. M for the above situation and its reason.
Solution Summary: The author explains that inventory shrinkage refers to the difference between the amount of inventory shown in the accounting records and the actual inventory.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
Chapter 5, Problem 5.1TIF
To determine
Inventory Shrinkage: It represents the loss of inventory. In other words, it refers to the difference between the amount of inventory shown in the accounting records and the actual inventory. The difference indicates the issues with the inventory caused due to lost, theft, clerical errors, damaged goods or spoilage.
In this case Company T is pressuring the accounting department to increase the earnings. Ms. M is an accountant in Company T. Ms. M’s boss already informed her that if the earnings will not increase then he will be terminated.
After the end of the fiscal year Ms. M compares the physical count to the balance in the inventory account, and finds a huge amount of inventory shrinkage. This amount is so huge that the earnings will drop significantly. Ms. M’s boss requests her to not to make any adjusting entry for the inventory shrinkage.
To Explain: The action of Ms. M for the above situation and its reason.
Write down as many descriptions describing rock and roll that you can.
From these descriptions can you come up with s denition of rock and roll?
What performers do you recognize?
What performers don’t you recognize?
What can you say about musical inuence on these current rock musicians?
Try to break these inuences into genres and relate them to the rock musicians. What does
Mick Jagger say about country artists?
What does pioneering mean?
What kind of ensembles w
Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?
Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?