Hi,

If I did a inventory count I came up with a loss of about $8k, to record this loss what would be the journal entry under a peroidic and a perpetual system?

Also is there a difference between inventory loss and shrinkage?

Remove invenotry for shortage amount/charge shortage to cost of good sold.

Remove inventory for shortage amount/charge shortage to cost of good sold.

Retained earning... Dr
Inventory... Cr.

r/e/inventory
Ditto for shrinkage...

Loss of goods entry

Loss goods a/c-Dr

To Purchase a/c