Telo Company's ledger on July $31,$ its fiscal year$-$end, shows merchandise inventory of $$37,800$ before accounting for any shrinkage. A physical count of its July $31$ year$-$end inventory discloses that the cost of the merchandise inventory still avallable is $$35,900.$

Prepare the entry to record any inventory shrinkage.

Journal entry worksheet

$1$

Record the adjustment for inventory shrinkage based on physical count. The company uses the perpetual inventory system.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $31,,,],[,,,],[,,,],[,,,]]$