Sam's Wholesale shows the following account balances in its ledger on June 30, its fiscal year-end. Sam's Wholesale uses the perpetual inventory system. A physical count of its June 30 year-end inventory discloses that the cost of the merchandise inventory still available is $57,160. Prepare the entry to record any inventory shrinkage.

Question

Sam's Wholesale shows the following account balances in its ledger on June 30, its fiscal year-end. Sam's Wholesale uses the perpetual inventory system.  A physical count of its June 30 year-end inventory discloses that the cost of the merchandise inventory still available is $57,160. Prepare the entry to record any inventory shrinkage.

Sam's Wholesale Shows the Following Account Balances in Its Ledger