Application Problem 7-14 The following information was taken from the accounting records of Chicoutimi Lte and Jonquire Lte at December 31, 2016. The two companies are competitors. Ending inventory, Dec. 31, 2015 Ending inventory, Dec. 31, 2016 Cost of goods sold, 2016 Sales for 2016 icoutimi Lte Jonquire Lte $159,200 203,200 928,480 2,321,200 $369,200 444,800 2,473,200 6,183,000 Calculate the gross margin, gross margin ratio, and inventory turnover ratio at December 31, 2016, for: i. Chicoutimi Lte ii. Jonquire Lte (Round inventory turnover ratio to 1 decimal place, e.g. 10.1.) Chicoutimi Jonquire Lte Gross margin Gross margin ratio Inventory turnover ratio times times LINK TO TEXT LINK TO TEXT LINK TO TEXT During the December 20, 2016, inventory count at Chicoutimi Lte, $71,200 of inventory shrinkage was identified. It had not been recorded in the inventory account. i. Prepare the entry to record the inventory shrinkage of $71,200. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented w manually.) Account and explanation Debit Credit ii. Recalculate Chicoutimi's gross margin, gross margin ratio, and inventory turnover ratio after the adjusting journal entry is made. (Hint: You need to adjust the ending inventory b gross margin ratio to 1 decimal place, e.g. 10.5% and inventory turnover ratio to 1 decimal place, eg. 8.5.) Chicoutimi Lt Gross margin Gross margin ratic Inventory turnover ratio times