=+PE 6-7A Inventory shrinkage obj. 4 EE 6-7 p. 275 Chapter 6 Accounting for Merchandising Businesses 291 Hairology Company’s perpetual inventory records indicate that $120,500 of merchandise should be on hand on April 30, 2010. The physical inventory indicates that $115,850 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Hairology Company for the year ended April 30, 2010. Assume that the inventory shrinkage is a normal amount.