Iverson Inc.s perpetual inventory records indicate that $675,150 of merchandise should be on hand on December 31,

Question:

Iverson Inc.’s perpetual inventory records indicate that $675,150 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $649,780 of merchandise is actually on hand. Illustrate the effects on the accounts and of the inventory shrinkage for Iverson Inc. for the year ended December 31, 2010.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...