Requlred Informetlon Nix\'It Company\'s ledger on July 31, its fiscal year-end,

Question

Requlred Informetlon 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 $5,58e 188,8ee 11,3ee 37,5e8 5,8e8 $42,88e Sales returns and allowances Cost of goods sold 125, 3 ciation expense 159,68e Salaries expense 3,98e Miscellaneous expenses A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $41.150 Prepare the entry to record any inventory shrinkage. View transaction list Journal entry worksheet Record the adjustment for inventory shrinkage based on physical count. Note: Enter debits before credits. Date General Journal Debit Credit July 31 Record entry Clear entry View general journal

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 31-Jul Cost of Goods Sold    1,650.00    Merchandise Inventory    1,650.00 (To record the inventory shrinkage) Inventory Shrinkage = $42,800 - $41,150 Inventory Shrinkage = $1,650

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