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Need Perpetual Inventory solved.

Home Hardware reported beginning inventory of twenty three shovels, for a total cost of $115. The company had the following transactions during the month:

Jan.		2		Sold 7 shovels on account at a selling price of $10 per unit
		16		Sold 13 shovels on account at a selling price of $10 per unit
		18		Bought 8 shovels on account at a cost of $5 per unit
		19		Sold 10 shovels on account at a selling price of $10 per unit
		24		Bought 13 shovels on account at a cost of $5 per unit
		31		Counted inventory and determined that 10 units were on hand

Periodic solved -

1.

No	Transaction	General Journal	Debit	Credit
1	January 02	Accounts receivable	70
		Sales revenue		70
2	January 16	Accounts receivable	130
		Sales revenue		130
3	January 18	Purchases	40
		Accounts payable		40
4	January 19	Accounts receivable	100
		Sales revenue		100
5	January 24	Purchases	65
		Accounts payable		65
6	January 31	Cost of goods sold	220
		Purchases		105
		Inventory		115
7	January 31	Inventory	50
		Cost of goods sold		50

2. Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Jan 02 - Record the sale of shovels.

Jan 02 - Record the cost of shovels sold.

Jan 16 - Record the sale of shovels.

Jan 16 - Record the cost of shovels sold.

Jan 18 - Record the purchase of shovels.

Jan 19 - Record the sale of shovels.

Jan 19 - Record the cost of shovels sold.

Jan 24 - Record the purchase of shovels.

Jan 31 - Record the entry for book-to-physical adjustment, if any.

3-What is the dollar amount of shrinkage that you were able to determine in requirement 1? (Periodic) 4. What is the dollar amount of shrinkage that you were able to determine in requirement 2? (Perpetual)

Answer & Explanation Solved by verified expert

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