Inventory Shrinkage Rodriguez Company's perpetual inventory records indicate that $240,050 of merchandise should be on hand on October 30, 20Y1. The physical inventory indicates that $220,850 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Rodriguez Company for the year ended October 30, 20Y1. Assume that the inventory shrinkage is a normal amount. If an amount box does not require an entry, leave it blank. Oct. 30 Cost of Merchandise Sold Merchandise Inventory Feedback Check My Work Inventory shrinkage is recorded by decreasing merchandise inventory and increasing cost of merchandise sold for the difference between the perpetual inventory records and the inventory on hand.