Knowledge Check $01$

A company uses a periodic inventory system and during the December $31,$ year$-$end physical inventory count discovered that they have incurred a $$300$ shrinkage in inventory.

Prepare the necessary adjusting entry to record this shrinkage by selecting the account names from the pull$-$down menus and entering dollar amounts in the debit and credit columns.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.