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 $ 39,800 Sales returns and allowances 119,300 Cost of goods sold 7,000 Depreciation expense 159,400 Salaries expense 3,300 Miscellaneous expenses $ 6,100 106,200 10,700 34,500 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,450. 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 Date General Journal Debit Credit