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 discounts $ 40,300 120, 300 7,000 159, 200 3,400 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 6,000 106,500 19,800 35,000 5,000 A physical count of its July 31 year end inventory discloses that the cost of the merchandise inventory still available is $38,900. Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 40,300 120, 300 7,000 159,200 3,400 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 6,000 106,500 10,800 35,000 5,600 entry worksheet 1 Record the adjustment for inventory shrinkage based on physical count. Note: Enter debits before credits. Date General Journal Debit Credit July 31 +