Crystal Company€™s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Crystal uses the perpetual inventory system).

A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $40,600. Prepare the entry to record any inventory shrinkage.

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7,600 115,000 12,000 45,000 7,000 Merchandise inventory 42,000 Sales returns and allowances 50,000 74,900 Cost of goods sold Depreciation expense- Retained earnings Sales . _ .. 275,300 Salaries expense 5,200 Miscellaneous expenses