- Sales for the year are $2,000,000. The Merchandise Inventory account at December 31 shows $720,000. A physical count of the inventory shows $710,000. The sales discount is 2/10,net/30. What is the amount of the shrinkage? . $10,000 $9,800 $40,000 $14,200 . Our company had $500 in the Supplies account on January 1. The physical count of supplies at December 31 showed $900 of supplies on hand. During the year, our company purchased $3,000 in supplies. What is the amount of Supplies Expense for the this year? $2,600 . $3,400 $3,500 some other amount