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 T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 42,300 124,300 7,000 Sales returns and allowances Cost of goods sold $ 5,600 107,700 Depreciation expense 11,200 159,100 Salaries expense 37,000 3,800 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $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.