Answer:
5 units
Explanation:
Shrinkage is the difference between the closing balance physically available after a count and and the expected closing balance considering the Opening inventory, sales and purchases for the period.
Given the following information;
Opening inventory = 100 units
Sales = 30 units
Closing inventory = 85 units
Purchases = 20 units
Expected closing balance = Opening balance - Sales + purchases
= 100 - 30 + 20
= 90 units
Shrinkage = 90 - 85
= 5 Units
