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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 . . . . . . . . $ 37,800
T. Nix, Capital . . . . . . . . . . . . . . . 115,300
T. Nix, Withdrawals . . . . . . . . . . . 7,000
Sales . . . . . . . . . . . . . . . . . . . . . . . 160,200
Sales discounts . . . . . . . . . . . . . . . 4,700
Salaries expense . . . . . . . . . . . . . . 32,500
Depreciation expense . . . . . . . . . . 10,300
Cost of goods sold . . . . . . . . . . . . 105,000
Sales returns and allowances . . . . $ 6,500
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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