Question

St. Book​ Shop's unadjusted Merchandise Inventory at June ​30, 2018 was $ 5 comma 600. The cost associated with the physical count of inventory on hand on June ​30, 2018​, was $ 5 comma 500. In​ addition, Morgan St. Book Shop estimated approximately $ 1 comma 200 of merchandise sold will be returned with a cost of $ 550.
Journalize the adjustment for inventory shrinkage.

Answer 1

Inventory shrinkage is the shortage of inventory in physical count when compared with the system records.

Explanation:

Write down the values given in the question

St. Book​ Shop's unadjusted Merchandise Inventory at June ​30, 2018 was $ 5 comma 600.

he cost associated with the physical count of inventory on hand on June ​30, 2018​, was $ 5 comma 500.

Morgan St. Book Shop estimated approximately $ 1 comma 200 of merchandise sold will be returned with a cost of $ 550.

the adjustment for inventory shrinkage is explained in the table attached

The amount that is credited and debited are are found by following the

Note : Inventory shrinkage is the shortage of inventory in physical count when compared with the system records.