The Merchandise Inventory account of a company shows a balan

The Merchandise Inventory account of a company shows a balance of $40,000 but a physical count of inventory shows $34,000 Which of the following entries is required to record the shrinkage? (Assume a perpetual nventory system.) OA. Cash O B. Cost of Goods Sold OC. Merchandise Inventory 6,000 Merchandise Inventory 6,000 6,000 Shrinkage Expense 6,000 6,000 Cost of Goods Sold 6,000 D. Cost of Goods Sold Merchandise Inventory 6,000

Solution

D. Cost of goods sold 6000

Merchandise inventory 6000