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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 $38,800 Sales returns and allowances $6300T. Nix, Capital $117,300 Cost of good sold $105,600T. Nix, withdrawals $7000 Depreciation expense $10,500Sales $159,800 Salaries expense $33,500Sales discounts $3100 Miscellaneous Expense $5000
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $37,550.
Problem 1: Prepare the entry to record any inventory shrinkage based on physical count.
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