Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a balance of $250,000,
Question:
Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a balance of $250,000, but a physical count shows that the merchandise on hand has a cost of only $246,000.
a. Explain the probable reason(s) for this discrepancy.
b. Prepare the journal entry required in this situation.
c. Indicate all the accounting records to which your journal entry in part b should be posted.
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a The reason why an actual physical count is likely to i...View the full answer
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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