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 |
$ 34,800 |
Sales returns and allowances |
$ 3,500 |
|
T. Nix, Capital |
115,300 |
Cost of goods sold |
102,000 |
|
T. Nix, Withdrawals |
7,000 |
Depreciation expense |
7,300 |
|
Sales |
157,200 |
Salaries expense |
29,500 |
|
Sales discounts |
1,700 |
Miscellaneous expenses |
2,000 |
A physical count of its July 31 year end inventory discloses that the cost of the merchandise inventory still available is $32,900. Prepare the entry to record any inventory shrinkage.