Adjustment for Merchandise Inventory Shrinkage Intrax Inc.\'s perpetual inventor

Question

Adjustment for Merchandise Inventory Shrinkage Intrax Inc.'s perpetual inventory records indicate that $815,400 of merchandise should be on hand on December 31, 20Y4. The physical inventory indicates that $798,300 of merchandise is actually on hand. Illustrate the effects on the accounts and financial statements of the Inventory shrinkage for Intrax Inc. for the year ended December 31, 20Y4 If no account or activity is affected, select "No effect from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. When entering the income statement effects, enter amounts that decrease net income as negative values. Balance Sheet Statement of Income Assets LiabilitiesStockholders' Equity Cash Flows Statement No Effect + Inventory = No Effect Retained Earnings 17,100 17,100 Statement of Cash Flows Income Statement No effect Cost of goods sold 17,100

Explanation / Answer

Stockholders Assets = liabilities + Equity no effect + inventory = no effect R.E. 0 -17,100 = 0 -17,100 Statement of cash flow income statement no effect 0 cost of goods sold 17,100

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