QS 5-14 (Algo) Accounting for shrinkageperpetual system LO P3

Telo Companys ledger on July 31, its fiscal year-end, shows merchandise inventory of $43,800 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 $42,050.

Prepare the entry to record any inventory shrinkage.