Zenith company inc.'s merchandise inventory account at the end of year 2015 has a balance of $91,820, but a physical count reveals that only $90,450 of inventory exists. the adjusting entry to record this $1,370 of inventory shrinkage is:

The gap of $1370 represents the amount of goods not yet delivered to the company. When a company purchases inventory, on the basis of the accrual principle in accounting, transactions are recorded as they occur even if the actual possession will take place eventually. In this case, the overall amount of merchandise bought is recorded in the company's books. After a physical count, we'll find out that the shrinkage represents stock that is yet to be delivered.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?