Three Turtles Company's perpetual inventory records indicate that $543,735 of merchandise should be on hand on August

Question:

Three Turtles Company's perpetual inventory records indicate that $543,735 of merchandise should be on hand on August 31, 2008. The physical inventory indicates that $520,250 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Three Turtles Company for the year ended August 31, 2008.