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 $38,800 Sales returns and allowances $6300

T. Nix, Capital $117,300 Cost of good sold $105,600

T. Nix, withdrawals $7000 Depreciation expense $10,500

Sales $159,800 Salaries expense $33,500

Sales discounts $3100 Miscellaneous Expense $5000

A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $37,550.

Prepare the entry to record any inventory shrinkage based on physical count.