Triangle Company's perpetual inventory records indicate that $111,500 of merchandise should be on hand on September 30,

Question:

Triangle Company's perpetual inventory records indicate that $111,500 of merchandise should be on hand on September 30, 2008. The physical inventory indicates that $107,400 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Triangle Company for the year ended September 30, 2008.