Sam's Wholesale Shows the Following Account Balances in Its Ledger

question 37

Essay

Sam's Wholesale shows the following account balances in its ledger on June 30, its fiscal year-end. Sam's Wholesale uses the perpetual inventory system.
A physical count of its June 30 year-end inventory discloses that the cost of the merchandise inventory still available is $57,160. Prepare the entry to record any inventory shrinkage.

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Definitions:

Alpha Cells

Cells found in the pancreas that produce glucagon, a hormone involved in the regulation of blood glucose levels.

Delta Cells

Cells found in the pancreas that produce somatostatin, a hormone that inhibits the release of numerous other hormones.

Somatostatin

A hormone that inhibits the release of several other hormones, such as growth hormone and insulin, playing a crucial role in regulating the endocrine system and cell proliferation.

Glucagon

A hormone produced by the pancreas that increases blood glucose levels by promoting the breakdown of glycogen to glucose in the liver.