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

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