Frisco Company Inc.'s Merchandise Inventory account at the end of year 2015 has a balance of $362,115, but a physical count reveals that only $61,900 of inventory exists. The adjusting entry to recorded this $215, of inventory shrinkage is: A company has net sales of $752,000 and cost of goods sold of $543,000. Its net income is $17,530. The company's gross margin and operating expenses, respectively, are: $209,000 and $191,470 $191,470 and $209,000 $525,470 and $ 227,000 $227,000 and $525,470 $734,000 and $191,470 On February 3, Smart Company, Ins. sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is