NixIt Companys ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (NixIt uses the perpetual inventory system).

A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $41,150.

$ Merchandise inventory T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 42,800 125, 300 7,000 159, 600 3,900 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses 5,500 108,000 11,300 37,500 5,000 Journal entry worksheet 1 Record the adjustment for inventory shrinkage based on physical count. Note: Enter debits before credits. General Journal Debit Credit Date July 31 Record entry Clear entry View general journal