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 T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 42,800 125,300 7,000 159,680 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 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $41,150 QS 5-9 Accounting for shrinkage-perpetual system LO P3 Prepare the entry to record any inventory shrinkage. View transaction list Journal entry worksheet - Record the adjustment for inventory shrinkage based on physical count. Note Enter debts before credits Debit 159.600 - Date July 31 General Journal Sales TN Capital 159.600 Saved 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 $ 5,500 100,000 11,300 37,500 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $41.150 QS 5-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.) View transaction list Journal entry worksheet 1 2 Record the entry to close the income statement accounts with credit balances Note: Enter debets before credits Debit General Journal Date Credit July 31 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 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory $41,150 QS 5-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to cons shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.) View transaction list Journal entry worksheet 1 2 Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits General Journal Debit Credit Date July 31