Madison Company's perpetual inventory records indicate that $535,330 of merchandise should be on hand on October 31. The physical inventory indicates that $503,740 is actually on hand.

Journalize the adjusting entry for the inventory shrinkage for Madison Company for the year ended October 31. If an amount box does not require an entry, leave it blank.

Oct. 31 ____________ _____ _____

____________ ______ ______

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

MerchandiseFreight Paid by SellerFreight TermsReturns and Allowancesa.$6,400 $286 FOB Shipping Point, 1/10, net 30$600 b.$7,200 $90 FOB Destination, 2/10, net 45$1,600

a. $_____

b. $_____