Show Me How Calculator E Print Item Adjusting Entry for Merchandise Inventory Shrinkage Paragon Tire Co.'s perpetual inventory records indicate that $559,970 of merchandise should be on hand on March 31, 2019. The physical inventory indicates that $543,170 of merchandise is actually on hand. Journalize the adjusting entry for the normal inventory shrinkage for Paragon Tire Co, for the year ended March 31, 2019. Cost of Merchandise Sold Merchandise Inventory Feedback Check My Work Inventory shrinkage is recorded by decreasing merchandise inventory and increasing cost of merchandise sold for the difference between the perpetual Inventory records and the physical Inventory on hand Previous Next >