eBook Show Me How Calculator Adjusting Entry for Merchandise Inventory Shrinkage Chart of Accounts Journal Instructions Paragon Tire Co.'s perpetual inventory records indicate that $2,720,500 of merchandise should be on hand on March 31, 2049. The physical inventory indicates that $2,670,800 of merchandise is actually on hand. Joumalize the adjusting entry for the inventory shrinkage for Paragon Tire Co for the year ended March 31, 2079 Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for joumal explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered