Pulmonary Inc.s perpetual inventory records indicate that $382,800 of merchandise should be on hand on March 31,

Question:

Pulmonary Inc.’s perpetual inventory records indicate that $382,800 of merchandise should be on hand on March 31, 2006. The physical inventory indicates that $371,250 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Inc. for the year ended March 31, 2006.