answersLogoWhite

0


Best Answer

You should offset it to Cost of Goods sold. It should be done thru Write-off of Goods.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How do you reduce Inventory Shortage Shrinkage?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is inventory shrinkage recorded as an expense?

As a reduction to merchandise inventory


How does a company that uses the perpetual inventory system determine the amount of inventory shrinkage?

By taking a physical count. They will take their recorded amount and subtract the physical count to analyze inventory shrinkage.


The adjustment to record inventory shrinkage would increase merchandise inventory?

yes


Define inventory shrinkage?

Inventory shrinkages occurs when good disappear from a company's inventory for an unknown reason. For example employee theft or damage.


Where are there shoe buy events?

Shoe buying events are held at the end of each season. They are held to reduce the amount of shrinkage a store produces with the old inventory from the previous season apparel.


What does shrinkage means in retail?

Shrinkage is the difference between the stock on the inventory book and the actual physical stock. Shrinkage is also deifned as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock. Shrinkage % is calculated as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock by the retail sales of this volume


Inventory shortage is recorded when?

merchandise is returned to seller


What are the advantages of the inventory?

Main advantage of holding inventory is that it allows to manufacturing process free of any stoppage due to shortage of inventory.Where prices are increasing inventory stock helps to keep reduce the production cost.It can help to acquire any positive revenue earning opportunities where available.


Objective of inventory management?

Some of the objectives of inventory management are as following:-To reduce Searching TimeTo reduce WastageTo implement FIFO inventory controlTo improve inventory trackingTo increase productivityTo improve Storage Space UtilizationTo improve Inventory Accuracy


When using a perpetual inventory system why are discounts credited to merchandise inventory?

The discounts reduce the cost of the merchandise inventory.


What does shrinkage temperature steel do?

Steel bars laid in concrete to reduce cracking do to temperature change


How do inventory management techiniques reduce inventory costs?

By making the process efficient and accurate.