Please answer in proper format with all working clearly, put narration also

View Policies Current Attempt in Progress At year-end, the perpetual inventory records of Sunland Company showed merchandise inventory of $118,580. The company determined, however, that its actual inventory on hand was $116,380. Record the necessary adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit