Effects of the inventory shrinkage on financial statements


Response to the following problem:

Intrax Inc.'s perpetual inventory records indicate that $815,400 of merchandise should be on hand on December 31, 2012. 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, 2012.

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Cost Accounting: Effects of the inventory shrinkage on financial statements
Reference No:- TGS02120255

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