Using the following information,what amount of "shrinkage" would be identified under the periodic inventory system?

A)$ 0
B)$300,000
C)$650,000
D)$700,000

Question

Using the following information,what amount of "shrinkage" would be identified under the periodic inventory system?

A)$ 0 
B)$300,000 
C)$650,000 
D)$700,000

Quizplus · Accepted Answer

A)Cannot calculate;under the periodic system,the company only keeps track of a single sum of $650,000 for cost of goods sold (Beg Bal + purchase - End Bal based on count)
It is not possible to determine how much is from the actual goods sold versus the amount from shrinkage.

Using the Following Information,what Amount of "Shrinkage" Would Be Identified