Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed.

Home Hardware reported beginning inventory of forty shovels, for a total cost of $160. The company had the following transactions during the month: 10 points Jan. 2 Sold 14 shovels on account at a selling price of $15 per unit 16 Sold 20 shovels on account at a selling price of $15 per unit 18 Bought 15 shovels on account at a cost of $4 per unit 19 Sold 20 shovels on account at a selling price of $15 per unit 24 Bought 20 shovels on account at a cost of $4 per unit 31 Counted inventory and determined that 20 units were on hand eBook 3-a. What is the dollar amount of shrinkage that you were able to determine in requirement 1? (Enter "O" if you were unable to determine the dollar amount of shrinkage.) Amount of shrinkage 3-b. What is the dollar amount of shrinkage that you were able to determine in requirement 2? (Enter "O" if you were unable to determine the dollar amount of shrinkage.) Amount of shrinkage