Question

Your business has two branch stores. The recent physical inventory reports that the merchandise value for each store is: Store A $454,385, and Store B $586,855. The merchandise book value for each store is: Store A $495,275, and Store B $615,225. What is the dollar amount of shrinkage for each store?

Answer 1

For store A, the amount of shrinkage is $ 40,890

For store B, the amount of shrinkage is $ 28,370

Explanation:

We know that,

The amount of shrinkage = Book cost - Actual cost,

In store A,

Actual cost = $ 454,385

Book cost = $ 495,275

So, the amount of shrinkage = $ 495,275 - $ 454,385 = $ 40,890

In store B,

Actual cost =$ 586,855

Book cost = $ 615,225

So, the amount of shrinkage = $ 615,225 - $ 586,855 = $ 28,370

Answer 2

To solve this problem you must apply the proccedure shown below:
1. You have that:
- The merchandise value for the Store A is $454,385, and for the Store B is $586,855.
- The merchandise book value for each store is: Store A $495,275, and Store B $615,225,
2. Therefore, you have that dollar amount of shrinkage for each store is:

Store A
=$495,275- $454,385
=$40,890

Store B
=$615,225-$586,855
=$28,370