Exercise 6.6 (Static) Taking a Physical Inventory (L06-3) Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a balance of $250,000, but a physical count shows that the merchandise on hand has a cost of only $246,000. b. Prepare the journal entry required in this situation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to reduce the inventory reflected in the year-end physical count. Note: Enter debits before credits. Transaction General Journal Debit Credit 1