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Assume that a perpetual inventory system is used and the records indicate that$191,400 of merchandise should be on hand on March 31, 20Y4. The physical
Assume that a perpetual inventory system is used and the records indicate that$191,400 of merchandise should be on hand on March 31, 20Y4. The physical inventory indicates that $185,625 of merchandise is actually on hand. Select the entry below that is needed to correctly journalize the inventory shrinkage. DESCRIPTION P.REF. DEBIT CREDIT DATE Mar. 31 Merchandise Inventory $5,575 Cost of Merchandise Sold $5,575 DESCRIPTION P.REF. DEBIT CREDIT DATE Mar. 31 Cost of Merchandise Sold $5,575 Merchandise Inventory $5,575 Mar. 31 Cost of Merchandise Sold $11,550 Merchandise Inventory $11,550 DESCRIPTION P.REF. DEBIT CREDIT DATE Mar. 31 Cash $11,550 Sales $11,550
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