At year$-$end, the perpetual inventory records of Wildhorse Co$.$ showed merchandise inventory of $$115,620.$ The company determined,

however, that its actual inventory on hand was $$110,480.$

Record the necessary adjusting entry. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no

entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles and Explanation

Debit

Credit