A Company's Ledger Shows an Inventory Balance of $20,000 and a Physical

Multiple Choice

A company's ledger shows an Inventory balance of $20,000 and a physical count of the inventory shows $19,000.Which of the following entries is needed to record the shrinkage?

A) $$\begin{array} { | l | r | r | } \hline \text { Cost of goods sold } & 1,000 & \\\hline \text { Shrinkage expense } & & 1,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Inventory } & 1,000 & \\\hline \text { Cost of goods sold } & & 1,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cost of goods sold } & 1,000 & \\\hline \text { Inventory } & & 1,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Inventory } & & 1,000 \\\hline\end{array}$$