Gift Shops Unlimited's Unadjusted Merchandise Inventory at December 31,2019 Was

question 227

Essay

Gift Shops Unlimited's unadjusted Merchandise Inventory at December 31,2019 was $7,600.The cost associated with the physical count of inventory on hand on December 31,2019 was $7,350.In addition,Gift Shops Unlimited estimated approximately $800 of merchandise sold on account will be returned with a cost of $450.Assume a perpetual inventory system is used.
Requirements:
1.Journalize the adjustment for inventory shrinkage.Omit explanation.
2.Journalize the adjustment for estimated sales returns.Omit explanation.

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Definitions:

Pharynx

The body cavity that connects the digestive and respiratory pathways, playing a key role in swallowing and breathing.

Chemoreceptors

Sensory cells or organs specialized in detecting chemical stimuli in the environment, involved in taste and smell in animals.

Arterial Concentration

The concentration of gases, nutrients, or other substances within the arterial blood, critical for assessing the health and function of the circulatory system.

Medulla

An inner region or core in various organs or cells, often referring specifically to the innermost part of the kidney or the lower part of the brain stem.