Frisco Company's Merchandise Inventory Account at Year-End Has a Balance

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) $$\begin{array} { | l | r | r | } \hline \text { Merchandise Inventory } & 215 & \\\hline \text { Inventory shrirkage expense } & & 215 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Purchases discounts } & 215 & \\\hline \text { Cost of goods sold } & & 215 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cost of goods sold } & 215 & \\\hline \text { Purchases discounts } & & 215 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Inventory shrinkage expense } & 215 & \\\hline \text { Cost of goods sold } & & 215 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Cost of goods sold } & 215 & \\\hline \text { Merchandise Inventory } & & 215 \\\hline\end{array}$$