Required information Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 43,800 Sales returns and allowances $ 5,300 108,600 11,500 38,500 5,000 127,300 Cost of goods sold 7,000 Depreciation expense 160,600 Salaries expense 4,100 Miscellaneous expenses 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. Journal entry worksheet Record the adjustment for inventory shrinkage based on physical count. Note: Enter debits before credits. Date General Journal Debit Credit July 31 Record entry Clear entry View general journal Journal entry worksheet Record the entry to close the temporary revenue and accounts with credit balances Note: Enter debits before credits. Date General Journal Debit Credit July 31 Record entry Clear entry View general journal Journal entry worksheet Record the entry to close the temporary expense and accounts with debit balances Note: Enter debits before credits. Date General Journal Debit Credit July 31