Required information [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 (Nix'it uses the perpetual inventory system) Merchandise inventory $ 42,300 Sales returns and allowances $ 5,600 T. Nix, Capital 124,300 Cost of goods sold 107,700 T. Nix, withdrawals 7,800 Depreciation expense 11,200 Sales 159,100 Salaries expense 37,200 Sales discounts 3,800 Miscellaneous expenses 5,60 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still availab $40,700. Prepare the entry to record any inventory shrinkage. View transaction list Journal entry worksheet 1 Record the adjustment for inventory shrinkage based on physical count. View transaction list Journal entry worksheet