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[The following information applies to the questions displayed below.] NixIt Companys ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (NixIt uses the perpetual inventory system). Merchandise inventory $ 38,800 Sales returns and allowances $ 6,300 T. Nix, Capital 117,300 Cost of goods sold 105,600 T. Nix, Withdrawals 7,000 Depreciation expense 10,500 Sales 159,800 Salaries expense 33,500 Sales discounts 3,100 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $37,550. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9.

(The solution from QS 5-9 is required to complete this question.) (QS 5-9) [The following information applies to the questions displayed below.] NixIt Companys ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (NixIt uses the perpetual inventory system). Merchandise inventory $ 38,800 Sales returns and allowances $ 6,300 T. Nix, Capital 117,300 Cost of goods sold 105,600 T. Nix, Withdrawals 7,000 Depreciation expense 10,500 Sales 159,800 Salaries expense 33,500 Sales discounts 3,100 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $37,550. Prepare the entry to record any inventory shrinkage.

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