Rich’s Furniture’s Inventory account at year-end appeared as follows:

Price: $1.99

S5-8 Adjusting inventory for shrinkage [5 min]
Rich’s Furniture’s Inventory account at year-end appeared as follows:

Inventory
Unadjusted balance 63,000

The physical count of inventory came up with a total of $61,900.

Requirement
1. Journalize the adjusting entry