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 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 39,000 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. 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. Note: Enter debits before credits.