At the Year-End,the Perpetual Inventory System of Horran Company Indicated $\begin{array}{lcc}\text { Inventory Shrinkage Expense} & 30 & \\\quad \text { Inventory} & &30 & \\\end{array}$

Multiple Choice

At the year-end,the perpetual inventory system of Horran Company indicated an ending inventory level of 190 units at a cost of $5 each.A physical count performed at year-end resulted in 184 units being on hand at a cost of $5 each.What journal entry,if any,is necessary at year-end?

A) No journal entry is necessary.
B) $\begin{array}{lcc}\text { Inventory Shrinkage Expense} & 30 & \\\quad \text { Inventory} & &30 & \\\end{array}$

C) $\begin{array}{lccc}\text { Cost of Goods Sold } & 30 \\\quad \text { Inventory Shrinkage Expense } & &30 & \\\end{array}$

D) $\begin{array}{lccc}\text { Inventory Shrinkage Expense } & 30 \\\quad \text { Cost of Goods Sold } && 30 & \\\end{array}$

E) $\begin{array}{lccc}\text { Inventory } & 30\\\quad\text { Cost of Goods Sold } && 30 \\\end{array}$