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A company s ledger on December 3 1 , its fiscal year - end, shows merchandise inventory of $ 4 3 , 8 0 0

A companys ledger on December 31, its fiscal year-end, shows merchandise inventory of $43,800 before accounting for inventory shrinkage. The company takes a physical count of its December 31 year-end inventory, and finds that the cost of the merchandise inventory still available is $42,050.
Record the adjustment for inventory shrinkage based on physical count. The company uses the perpetual inventory system.

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