Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below] Nix'it Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances. (Nix'It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounte $ 37,800 115,300 Sales returns and allowances Cost of goods sold $ 6,500 105,000 7,000 Depreciation expense 160,200 4,700 Salaries expense Miscellaneous expenses 10,300 32,500 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900. QS 4-9 Accounting for shrinkage-perpetual system LO P3 Prepare the entry to record any inventory shrinkage. Answer is complete but not entirely correct. No 1 Date July 31 General Journal Debit Credit Cost of goods sold 105,000 Merchandise inventory 105,000