QS 4-14 (Algo) Accounting for shrinkage-perpetual system LO P3 Telo Company's ledger on July 31, its fiscal year-end, shows merchandise inventory of $41,800 before accounting for any shrinkage. A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $40,250. 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. The company uses the perpetual inventory system. Note: Enter debits before credits. Date July 31 Record entry General Journal Clear entry Debit

QS 4-14 (Algo) Accounting for shrinkage-perpetual system LO P3 Telo Company's ledger on July 31 , its fiscal year-end, shows merchandise inventory of $41,800 before accounting for any shrinkage. physical count of its July 31 year-end inventory discioses that the cost of the merchandise inventory still available is $40,250. Prepare the entry to record any inventory shrinkage. Journal entry worksheet Record the adjustment for inventory shrinkage based on physical count. The company uses the perpetual inventory system. Note: Enter debits before credits