Office Outfitters Inc., which uses a perpetual inventory system, experienced a normal inventory shrinkage of $3,750. What accounts would be increased and decreased to record the adjustment for the inventory shrinkage at the end of the accounting period?
Answer to relevant QuestionsAssume that Office Outfitters Inc. in Question 13 experienced an abnormal inventory shrinkage of $56,900. Office Outfitters Inc. has decided to record the abnormal inventory shrinkage so that it would be separately disclosed ...For the fiscal year, sales were $8,300,000, sales discounts were $100,000, sales returns and allowances were $45,000, and the cost of merchandise sold was $5,000,000.a. What was the amount of net sales?b. What was the amount ...Merchandise is sold on account to a customer for $12,500, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $250. Determine the following: (a) Amount of the sale, (b) Amount debited to Accounts Receivable, ...Based on the data presented in Exercise 4-23, illustrate the effects on the accounts and financial statements of Butler Co. for (a) The purchase, (b) The return of the merchandise for credit, and (c) The payment of the ...The Laurel Co. is owned and operated by Paul Laurel. The following is an excerpt from a conversation between Paul Laurel and Maria Fuller, the chief accountant for Laurel Co.Paul: Maria, I’ve got a question about this ...
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