At the beginning of the year, Snaplt had $$12,400$ of inventory. During the year, Snaplt purchased $$39,800$ of merchandlse and

sold $$33,600$ of merchandise. A physical count of Inventory at year$-$end shows $$13,400$ of Inventory exists. Prepare the entry

to record Inventory shrinkage.

Journal entry worksheet

Record the inventory shrinkage.

Note: Enter debits before credits.