Journalizing adjusting entries and computing gross profit Emerson St. John Book Shop uses a perpetual inventory system. Emerson St. John Book Shop’s accounts at June 30, 2016, included the following unadjusted balances:
The cost associated with the physical count of inventory on hand on June 30, 2016, was $5,000. Requirements
1. Journalize the adjustment for inventory shrinkage.
2. Compute the gross profit.
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