RSM220H1 Chapter Notes - Chapter 8: Shoplifting, Gross Profit, Net Income
Document Summary
Inventory (100 x ) (b) sales revenue(,440 + ,250 + 1,500 (c) for a periodic system, the journal entry would be. Therefore, the loss would be buried in cost of goods sold assuming there are no accounting records available against which to compare the physical count. Alternately, if the company maintains a modified perpetual system, with accounting records tracking inventory in units, the company would then be able to identify the shortage and report it separately in the other. The loss of 8 units (110 - 102) or (8 x ) would then be recorded as inventory shrinkage to inventory over and short and the. If the shortage were caused by incorrect record keeping, the inventory over and. Short would be included in cost of goods sold. Inventory ([(20 x ) + (100 x . 50)] Inventory [(50 x . 50) + (50 x )] Cost of goods sold (,200 + ,950 +,675)
