RECOMMENDED!!Flynn Company uses a perpetual inventory system and reported $533,000

  

Flynn Company uses a perpetual inventory system and reported $533,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $38,000 of inventory and sold inventory that had cost $32,750. At the end of the month, the physical count of inventory shows $535,000 on hand. How much shrinkage occurred during the month?

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