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Alvarado Company began the current month with inventory costing $11,000, then purchased inventory at a cost of $36,500. The perpetual inventory system indicates that inventory

Alvarado Company began the current month with inventory costing $11,000, then purchased inventory at a cost of $36,500. The perpetual inventory system indicates that inventory costing $32,750 was sold during the month for $42,000. If an inventory count shows that inventory costing $14,400 is actually on hand at month-end, what amount of shrinkage occurred during the month?

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