At year-end, the perpetual inventory records of Whispering Winds Corp. showed merchandise inventory of $112,410. The company determined, however, that its actual inventory on hand was $110,490. Record the necessary adjusting entry.

Given that

Merchandised inventory = $112,410

Actual inventory = $110,490

So, the amount of the inventory would be adjusted is

= $112,410 - $110,490

= $1,920

So, the adjusted journal entry is

Cost of Goods Sold A/c Dr $1,920

To Merchandise inventory A/c $1,920

(Being the inventory amount is adjusted)