Frisco Company Inc B) C) D) E)

Multiple Choice

Frisco Company Inc.'s Merchandise Inventory account at the end of year 2015 has a balance of $62,115, but a physical count reveals that only $61,900 of inventory exists. The adjusting entry to record this $215 of inventory shrinkage is:

A) $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Merchandise } \\\text { Invertory }\end{array} & 215 & \\\hline \begin{array} { l } \text { Irvertory } \\\text { shrinkage } \\\text { expense }\end{array} & &215 \\\hline \end{array}$$
B) $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Purchases } \\\text { discounts }\end{array} & 215 & \\\hline \begin{array} { l } \text { cost of } \\\text { goods } \\\text {sold }\end{array} & &215 \\\hline \end{array}$$
C) $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Cost of } \\\text { goods sold }\end{array} & 215 & \\\hline \begin{array} { c } \text { Purchases } \\\text { discourts }\end{array} && 215 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Inventory } \\\text { shrinkage } \\\text { expense }\end{array} & 215 & \\\hline \begin{array} { l } \text { Cost of } \\\text { goods } \\\text { sold }\end{array} & &215 \\\hline\end{array}$$
E) $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Cost of Goods } \\\text { Sold }\end{array} & 215 & \\\hline \begin{array} { c } \text { Mer chandise } \\\text { Invertory }\end{array} & &215 \\\hline\end{array}$$