The accounting records for Sports-R-Us, a superstore targeted at armchair athletes, showed that it had bought and received $1,830,000 worth of merchandise. An actual count of the merchandise in the store showed only $1,644,000 worth of merchandise in stock. What other information is needed to calculate inventory shrinkage

Question

Business

Aryana Burns

20 January, 14:11

The accounting records for Sports-R-Us, a superstore targeted at armchair athletes, showed that it had bought and received $1,830,000 worth of merchandise. An actual count of the merchandise in the store showed only $1,644,000 worth of merchandise in stock. What other information is needed to calculate inventory shrinkage

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Answers (2)

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Keely Parrish · Answer 1

sales record of the superstore

Explanation:

since the superstore (sport-R-Us) have an accounting records that shows that the superstore have bought and received $1830000 worth of goods

but an actual count of the goods/merchandise in the store showed only $164400 worth of merchandise in stock. therefore to calculate the inventory shrinkage which is the deduction of sales from purchases.

we have to find/calculate the sales of the merchandise within the period before we can calculate the inventory shrinkage hence the information needed is the sales record

Triston · Answer 2

Sales

Explanation:

If the accounting records for Sports-R-Us, a superstore targeted at armchair athletes, showed that it had bought and received $1,830,000 worth of merchandise.

And An actual count of the merchandise in the store showed only $1,644,000 worth of merchandise in stock.

The other information is needed to calculate inventory shrinkage is sales for the period.

Before we can conclude on the level of inventory shrinkage, we must deduct sales from purchases to know the value of closing inventory which will be compared with the actual count.