The following information was taken from the accounting records of Pembroke Ltd. and Deep River Ltd. at October 31,2020 . The two companies are competitors.Calculate the gross margin, gross margin ratio, and inventory turnover ratio at October 31,2020 , for: i. Pembroke Ltd. ii. Deep River Ltd. (Round inventory turnover ratio to 1 decimal ploce, eg. 10.1.)During the December 31,2020 , inventory count at Deep River Ltd., $79,000 of inventory shrinkage was identified. It has not been recorded in the inventory account. i. Prepare the entry to record the inventory shrinkage of $79,000. (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 Deep River'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. 10.5% and inventory turnover ratio to 1 decimal place, es. 8.5.).

1. The following information was taken from the accounting records of Pembroke Ltd. and Deep
River Ltd. at October 31,2020 . The two companies are competitors.Calculate the gross margin,
gross margin ratio, and inventory turnover ratio at October 31,2020 , for: i. Pembroke Ltd. ii. Deep
River Ltd. (Round inventory turnover ratio to 1 decimal ploce, eg. 10.1.)During the December
31,2020 , inventory count at Deep River Ltd., $79,000 of inventory shrinkage was identified. It has
not been recorded in the inventory account. i. Prepare the entry to record the inventory shrinkage
of $79,000. (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 Deep River'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.
10.5% and inventory turnover ratio to 1 decimal place, es. 8.5.)