Nix’It Company’s ledger on july 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory …… $37,800 T,Nix. Capital…….. 115,300 T.Nix, Withdrawls……. 7,000 Sales….. 160,200 Sales discounts…. 4,700 Sales returns and allowances….. $6,500 Cost of goods sold….. 105,000 Depreciation expense….. 10,300 Salaries expense…. 32,500 Miscellaneous expenses….. 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900. Prepare the entry to record any inventory shrinkage.
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