eBook Show Me How Print hom Adjusting Entry for Merchandise Inventory Shrinkage Paragon Tire Co.'s perpetual inventory records indicate that $724,680 of merchandise should be on hand on March 31, 2019. The physical inventory indicates that $688,450 of merchandise is actually on hand. Journalize the adjusting entry for the normal inventory shrinkage for Paragon Tire Co. for the year ended March 31, 2019