Frisbee hardware uses a perpetual inventory system.At year-end, the Inventory account has a bal-ance of $250,000, but a physical count shows that the merchandise on hand has a cost of only $246,000.

a. Explain the probable reason(s) for this discrepancy.
b. Prepare the journal entry required in this situation.
c. Indicate all the accounting records to which your journal in part b should be posted.


Pleaseeeeeeeeee helpppppp meeeee :'(:'(

While we will help you, we will not do your work for you.

Please show your work and/or explain what you having difficulties with.

One possible reason would be theft of the merchandise.

Another possibility is that a sale was not recorded.

a. Explain the probable reason(s) for this discrepancy.
Calls for an opinion, be it theft, charity, miscount whatever..!

b. Prepare the journal entry required in this situation.
Difference between inventory and actual count, with notation/explanation..................!

c. Indicate all the accounting records to which your journal in part b should be posted.
Please indicate options available from book..!