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 $38,800 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 $37,550. Prepare the entry to record any Inventory shrinkage. View transaction list Journal entry worksheet