Question

​Computers's Merchandise Inventory account at​ year-end is showing a balance of $ 43 comma 000. The physical count of inventory came up with $ 41 comma 600. Journalize the adjusting entry needed to account for the inventory shrinkage. The company uses the perpetual inventory system.​

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Cost of goods sold Dr $1,400

To Merchandise inventory $1,400

(Being the inventory shrinkage is recorded)

It is computed below:

= $43,000 - $41,600

= $1,400

For recording this given journal entry, we debited the cost of goods sold and credited the merchandise inventory.