Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 45,800 Sales returns and allowances 131,300 Cost of goods sold $ 4,900 109,800 11,900 40,500 7,000 Depreciation expense 162,600 Salaries expense 4,500 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850. QS 4-11 (Algo) Accounting for shrinkage-perpetual system LO P3 Prepare the entry to record any inventory shrinkage. View transaction list Journal entry worksheet 1 Record the adjustment for inventory shrinkage based on physical count. Note: Enter debits before credits. Date General Journal Debit Credit July 31 Cost of goods sold Merchandise inventory < Prev 6 10 of 12 Next >