The Inventory account for Brady ComputerBrady Computer , Inc., had a balance of $110,200 at the end of its fiscal year. A physical count taken at year end revealed that the value of inventory on hand amounted to $106,800.

Requirements

1.	Journalize the adjustment for inventory shrinkage.
2.	What could cause the inventory balance according to the physical count to be different from the ledger balance?

Journal Entry Date Accounts Debit Credit