Stanley Flooring Companys perpetual inventory records indicate that $1,129,000 of merchandise should be on hand on December

Question:

Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of merchandise should be on hand on December 31, 20Y1. The physical inventory indicates that $1,109,300 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Stanley Company for the year ended December 31, 20Y1. Assume that the inventory shrinkage is a normal amount.