Emerson St. Book Shop's unadjusted Merchandise Inventory at June 30, 2018 was $5,200.

The cost associated with the physical count of inventory on hand on June 30, 2018

was $4,900.In addition, Emerson St. Book Shop estimated approximately $1,000 of merchandise sold will be returned with a cost of

$400.

Requirements

1.	Journalize the adjustment for inventory shrinkage.
2.	Journalize the adjustment for estimated sales returns.