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The following information was taken from the accounting records of Chicoutimi Lt$$e$.$ and Jonqui$$re Lt$$e$.$ at December $31,2020.$ The

two companies are competitors.

Part $1$

Calculate the gross margin, gross margin ratio, and inventory turnover ratio at December $31,2020,$ for:

i$.$ Chicoutimi Lt$$e$.$

ii$.$ Jonqui$$re Lt$$e$.$ Part $1$

Calculate the gross margin, gross margin ratio, and inventory turnover ratio at December $31,2020,$ for:

i$.$ Chicoutimi Lt$$e$.$

ii$.$ Jonqui$$re Lt$$e$.$

$($Round inventory turnover ratio to $1$ decimal place, e$.$g$.10\mathrm{.}1.)$ Part $2$

During the December $20,2020,$ inventory count at Chicoutimi Lt$$e$.,$ $$80,000$ of inventory shrinkage was identified. It had not

been recorded in the inventory account.

i$.$ Prepare the entry to record the inventory shrinkage of $$80,000.($Credit account titles are automatically indented when amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts.$)$ ii$.$ Recalculate Chicoutimi's gross margin, gross margin ratio, and inventory turnover ratio after the adjusting journal entry is

made. $($Hint: You need to adjust the ending inventory balance for $2020$ and the cost of goods sold.$)($Round gross margin ratio to $1$ decimal

place, e$.$g$.10\mathrm{.}5\%$ and inventory turnover ratio to $1$ decimal place, e$.$g$.8\mathrm{.}5.)$

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