Record the following transaction using the perpetual method.

For account titles use the account names listed above (be cautious about spelling as this can return an incorrect answer). For transaction amounts do not use "$" or commas in your answer.

George, Inc. uses the perpetual method of recording inventory. Its records show Inventory on hand of $105,773. A count of the inventory, however, finds only $98,200 of inventory on hand. Record the entry needed by George to correct its records. Assume an amount over 5% of total inventory would be considered material.