Frisco Company's Merchandise Inventory account at year-end 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.
| Inventory shrinkage expense | 215 | |
| Cost of goods sold | 215 |
B.
| Cost of goods sold | 215 | |
| Purchases discounts | 215 |
C.
| Cost of goods sold | 215 | |
| Merchandise Inventory | 215 |
D.
| Purchases discounts | 215 | |
| Cost of goods sold | 215 |
E.
| Merchandise Inventory | 215 | |
| Inventory shrinkage expense | 215 |
Answer: C
Business
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