Sunglass Bungalow had the following FIFO perpetual inventory record at

Sunglass Bungalow had the following FIFO perpetual inventory record at April 30, the end of the fiscal year.

Sunglass Bungalow had the following FIFO perpetual inventory record at

A physical count of the inventory performed at year end revealed $64.75 of inventory on hand.

Requirements
1. Journalize the adjusting entry for inventory, if any is required.
2. What could have caused the value of the ending inventory based on the physical count to be lower than the amount based on the perpetual inventoryrecord?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...

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