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............................... $37,800
Retained earnings......................................115,300
Dividends..................................................7.000
Sales.....................................................160.200
Sales discounts............................................4,700
Sales returns and allowances.........................$ 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.