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Home Hardware reported beginning inventory of 30 shovels, for a total cost of $90. The...

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Accounting

Home Hardware reported beginning inventory of 30 shovels, for a total cost of $90. The company had the following transactions during the month:

January 2Sold 7 shovels on account at a selling price of $10 per unit.January 16Sold 12 shovels on account at a selling price of $10 per unit.January 18Bought 4 shovels on account at a cost of $3 per unit.January 19Sold 12 shovels on account at a selling price of $10 per unit.January 24Bought 12 shovels on account at a cost of $3 per unit.January 31Counted inventory and determined that 13 units were on hand.

Part 1) What is the dollar amount of shrinkage that you were able to determine in periodic inventory system?

Part 2) What is the dollar amount of shrinkage that you were able to determine in perpetual inventory system?

Part 3) Prepare the journal entries that would be recorded using a periodic inventory system.

Part 4) Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed.

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