Question: Beginning inventory for the period was $220,000. Purchases for the period totaled $720,000 and sales were $1,250,000. A physical count of ending inventory revealed inventory

Beginning inventory for the period was $220,000. Purchases for the period totaled $720,000 and sales were $1,250,000. A physical count of revealed inventory of $145,000.
(1) Compute cost of goods sold assuming that a periodic system is used and
(2) Make the journal entry to record inventory shrinkage assuming that a perpetual system is used and cost of goods sold according to the system was $710,000.

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