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Debora [2.8K]
4 years ago
13

Your business has two branch stores. The recent physical inventory reports that the merchandise value for each store is: Store A

$454,385, and Store B $586,855. The merchandise book value for each store is: Store A $495,275, and Store B $615,225. What is the dollar amount of shrinkage for each store?
Business
1 answer:
miv72 [106K]4 years ago
6 0

Answer: Shrinkage for Store A ($40,890), Store B ($28,370)

Given:

Merchandise Value of Stores A and B

<span>A1 $454,385, and  B1 $586,855</span>

Book Value of Stores

<span>A2 $495,275, and  B2 $615,225</span>

Shrinkage<span> refers to the loss of inventory from whatever source.   </span>

Shrinkage for each store is computed as:

Book Value – Merchandise Value

Shrinkage for Store A

A2-A1

495,275-454,385

$40,890

 

Shrinkage for Store B

B2-B1

615,225-586,855

<span>$28,370</span>

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