Omega Tire Co.'s perpetual inventory records indicate that $3,145,000 of merchandise should be on hand on August

Question:

Omega Tire Co.'s perpetual inventory records indicate that $3,145,000 of merchandise should be on hand on August 31. The physical inventory indicates that $3,113,500 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Omega Tire Co. for the fiscal year ended August 31.