Inventory shrinkage is $100. The income statement debit and credit columns of the worksheet total $2,500 and $2,500, respectively, not including the adjustment amounts for shrinkage. The net income or loss for the period is

Question

Quizplus · Accepted Answer

Since there was a $100 shrinkage in the inventory, the net income or loss will be reduced by $100. Therefore, the net income or loss for the period will be $100 less than the total debit and credit columns of the worksheet, which is a net loss of $100 in this case. So, the correct answer is D.

Inventory Shrinkage Is $100