Teramycin Inc.’s perpetual inventory records indicate that $715,275 of merchandise should be on hand…

Teramycin Inc.’s perpetual inventory records indicate that $715,275 of merchandise should be on hand on January 31, 2008. The physical inventory indicates that $698,150 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Teramycin Inc. for the year ended January 31, 2008.