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 Sales returns and allowances . . . . . . . . . $ 6,500 Common stock . . . . . . . . . . . . . 25,000 Cost of goods sold . . . . . . . . . . . . . . 105,000 Retained earnings . . . . . . . . . . . 97,300 Depreciation expense . . . . . . . . . . . . . 10,300 Sales . . . . . . . . . . . . . . . . . . . . . 160,200 Salaries expense . . . . . . . . . . . . . . . . . 32,500 Sales discounts . . . . . . . . . . . . . 4,700 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.