Paragon Tire Co.'s ser;etwal inventory records indicate that $2,780.000 or merchandise should be or hand on March 31, 2016. The physical inventory indicates that $2,734,800 of merchandise is actually on hand. Journalize We adjusting entry tor We inventory shrinkage tor Paragon Tire Co. tor We year ended March 31, 2016. Refer to the chart of Accounts for exact wording of account titles. Journal Journalize we adjusting entry for We inventory shrinkage for Paragon Tire Co. for the year ended March 31. 2016. Refer to the Chart of Accounts for exact wording of account titles