QS 5-14 (Algo) Accounting for shrinkage-perpetual system LO P3 Telo Company's ledger on July 31, its fiscal year-end, shows merchandise inventory of $44,300 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 $42,500. Prepare the entry to record any inventory shrinkage. View transaction list 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. Date July 31 General Journal Debit Credit Record entry Clear entry View general journal