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.

Q: Record the adjustment into T accounts and then journalize the adjusting entry.

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Q: Adjusting Entry for Merchandise Inventory Shrinkage         Paragon Tire Co.’s perpetual inventory…

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