The following amounts summarize Transeer Company's merchandising activities during 2014. Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the activities directly in the accounts and calculate the account balances.
Cost of merchandise sold to customers in sales transactions ............... $180,000
Merchandise inventory balance, Dec. 31, 201 3 ................................. 35,000
Invoice cost of merchandise purchases.......................................... 186,000
Shrinkage determined on Dec. 31, 2014........................................... 31,000
Cost of transportation-in ............................................................. 1,900
Cost of merchandise returned by customers and restored to inventory......... 2,200
Purchase discounts received.......................................................... 1,600
Purchase returns and allowances received.......................................... 4,100
Analysis Component:
You are the inventory manager and have reviewed these numbers. Comment on the shrinkage