Paragon Tire Co.’s perpetual inventory records indicate that $2,780,000 of merchandise should be on hand on March 31, 2019. The physical inventory indicates that $2,734,800 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Paragon Tire Co. for the year ended March 31, 2019.

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A: Part I d. Prepare the journal entry for inventory shrinkage for R Company.

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Q: Question: A company uses a perpetual system to record inventory transactions. The company purchases…

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