Iverson Tile Co.s perpetual inventory records indicate that $675,150 of merchandise should be on hand on December

Question:

Iverson Tile Co.’s perpetual inventory records indicate that $675,150 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $649,780 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Iverson Tile Co. for the year ended December 31, 2010.