Journal entry is the first step of accounting to recording day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business. To record: The adjusting entry for inventory shrinkage.

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Chapter 5, Problem 5.9SE

To determine

Introduction: Journal entry is the first step of accounting to recording day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business.

To record: The adjusting entry for inventory shrinkage.

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