Description: How did this happen? So, you’ve probably heard that marijuana has been legalized and there are now a variety of ways to buy it, depending on where you live. But in New Brunswick, where the government has chosen a Crown corporation model, at least 12 of the roughly twenty Cannabis NB stores were shut down some time in the last week because they were without inventory. Customers showing up at the closed doors were probably not pleased.
Date: November 6, 2018
1) Had you or your classmates heard about this store closure issue? What was your response?
2) On page 6 of Wiley’s Managerial Accounting: Tools for Business Decision-Making, you can read about the impact of stock outs. How do you think these stock outs at Cannabis NB may impact on the company?
3) What journal entries would you prepare to show the sale of a product and the corresponding cost of goods sold when you sell inventory? See Chapter Five of Wiley’s Financial Accounting: Tools for Business Decision-Making.