181. The records of Nevada Co. indicated that $420,000 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $370,000 of merchandise is actually on hand....

181. The records of Nevada Co. indicated that $420,000 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $370,000 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 31, 2010.

182. Selected accounts and amounts appear below. Journalize the closing entry, assuming a perpetual inventory system.

183. Discuss the following statement:


“Operating cycles for all merchandising businesses are the same, with similar profit margins.”



Include an example(s) to illustrate your explanation.