VIII. A merchandising company's ledger on May 31, its fiscal year-end, includes the following accounts that have normal balances (it uses the perpetual inventory system). A physical count of its May 31 year-end inventory reveals that the cost of the merchandise inventory still available is $656. (a) Prepare the entry to record any inventory shrinkage. (b) Prepare the four closing entries as of May 31. (10%, 2% each) Merchandise Inventory $ 756 Other Operating Expenses S 300 Z. Zee, Capital 2,300 Cost of Goods Sold 2,100 Z. Zee, Withdrawals 150 Depreciation Expense 400 Sales 4,300 Salaries Expense 600 Sales Discounts 50 Sales Returns and Allowances 250