Adjusting Entry for Merchandise Inventory Shrinkage Paragon Tire Co.'s perpetual inventory records indicate that $813,580 of merchandise should be on hand on March 31, 2019. The physical inventory...

Adjusting Entry for Merchandise Inventory Shrinkage

Paragon Tire Co.'s perpetual inventory records indicate that $813,580 of merchandise should be on hand on March 31, 2019. The physical inventory indicates that $789,170 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.