Adjusting Entry for Inventory Shrinkage Omega Tire Co.'s perpetual inventory records indicate that $3,145,000 of merchandise should be on hand on August 31, 20Y4. The physical inventory indicates that $3,113,500 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Omega Tire Co. for the fiscal year ended August 31, 20Y4. If an amount box does not require an entry, leave it blank. 3,145,000 X Feedback 3,113,500 X 3,113,500 X Check My Work Inventory shrinkage is recorded by decreasing merchandise inventory and increasing cost of merchandise sold for the difference between the perpetual inventory record and the physical inventory on hand.