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    Muhammad_Rizwan's Avatar
    Muhammad_Rizwan Posts: 1, Reputation: 1
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    #1

    Jun 24, 2014, 01:47 AM
    Frisbee hardware uses a perpetual inventory system
    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 :'(:'(
    Cat1864's Avatar
    Cat1864 Posts: 8,007, Reputation: 3687
    Marriage Expert
    		  
    #2

    Jun 24, 2014, 07:35 AM
    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.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Jun 24, 2014, 09:57 AM
    One possible reason would be theft of the merchandise.

    Another possibility is that a sale was not recorded.
    talaniman's Avatar
    talaniman Posts: 54,325, Reputation: 10855
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    #4

    Jun 24, 2014, 11:18 AM
    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..!
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