It is given that the electronics store has a merchandise book value of $245,000. Thus, in other words it's inventory as per records = $245,000 .
Likewise when the conduct of the physical inventory was done it was found to be of the value $237,000. Thus, in other words the inventory as per physical count = $237,000
Therefore, Shrinkage will be: Inventory on record - Inventory as per physical count.
Therefore, Shrinkage = $245,000 – $237,000 = $8,000
Now, Total sales = $360,000
Therefore, Shrinkage as a percentage of sales is given as:
Thus, the shrinkage as a percentage of sales is <u>2.22%</u>.