record adjustments for iventory shrinkage

Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Nix'it Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 44,300 Sales returns and allowances 128,300 Cost of goods sold 7,000 Depreciation expense 161,100 Salaries expense 4,200 Miscellaneous expenses $ 5,200 108,900 11,600 39, see 5.000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $42,500. QS 4.9 Accounting for shrinkage- perpetual system LO P3 12:30U3COOLE