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Item 10

TB MC Qu. 6-59 (Algo) Alvarado Company began the current...

Alvarado Company began the current month with inventory costing $32,000, then purchased inventory at a cost of $77,000. The perpetual inventory system indicates that inventory costing $68,000 was sold during the month for $86,000. If an inventory count shows that inventory costing $40,055 is actually on hand at month-end, what amount of shrinkage occurred during the month?

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