Nix’it company’s ledger on july 31, its fiscal year-end, includes the

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Merchandise inventory …… $37,800

T,Nix. Capital…….. 115,300

T.Nix, Withdrawls……. 7,000

Sales….. 160,200

Sales discounts…. 4,700

Sales returns and allowances….. $6,500

Cost of goods sold….. 105,000

Depreciation expense….. 10,300

Salaries expense…. 32,500

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 $35,900. Prepare the entry to record any inventory shrinkage.

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