Question: The entry to recognize inventory shrinkage will cause the balance in the Merchandise Inventory account to increase and the balance in the Cost of Goods

The entry to recognize inventory shrinkage will cause the balance in the Merchandise Inventory account to
increase and the balance in the Cost of Goods Sold account to decrease
decrease and the balance in the Cost of Goods Sold account to decrease
decrease and the balance in the Cost of Goods Sold account to increase
increase and the balance in the Cost of Goods Sold account to increase
The entry to recognize inventory shrinkage will cause the balance in

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