Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise should be on hand on December 31, 20Y1. The physical inventory indicates that $1,109,300 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Stanley Flooring Company for the year ended December 31, 20Y1. Assume that the inventory shrinkage is a normal amount.

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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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A: COST OF GOODS MANUFACTUREDCost Of Goods Manufactured is the cost which is Directly or Indirectly…

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A: The cost of goods sold (CoGS) would be computed as follows: - CoGS = Sales × 1 - Gross Margin…

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A: Introduction: Journal entry is used to document a commercial transaction in a corporation's…

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A: Inventory Costing Method:- There are various methods used for valuation of inventory in the income…

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A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

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A: Formula to calculate cost of merchandise sold: Cost of merchandise sold = Opening merchandise…

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A: Inventory is reported on the balance sheet of the company and thus, it is necessary to determine the…

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A: Cost of goods sold = Beginning inventory + merchandise  purchased - Ending inventory

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A: In Periodic inventory , the beginning inventory balance is written off by  debiting it  to income…

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A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

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A: Lower of cost or NRV:It implies an approach that is being followed while accounting for the…

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A: Step 1The calculation of the value of inventory on April 13 is as follows: CompanyInventory…

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A: The gross profit is calculated as the difference between sales and cost of goods sold. The ending…

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A: Lower of cost or NRV:It implies an approach that is being followed while accounting for the…

Q: [The following Information applies to the questions displayed below.] A company reports the…

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: First-in, first-out method is the method that is used to record the purchase sales and inventory of…

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A: Inventory refers to the stock that is left with the company at the end of the year or the stock that…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.