The Merchandise Inventory Account of a Company Shows a Balance $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 3,000 & \\\hline \text { Shrinkage Expense } & & 3,000 \\\hline\end{array}$$

The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $67,000 Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system. )

A) $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 3,000 & \\\hline \text { Shrinkage Expense } & & 3,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Merchandise Inventory } & 3,000 & \\\hline \text { Cost of Goods Sold } & & 3,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 3,000 & \\\hline \text { Merchandise Inventory } & & 3,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 3,000 & \\\hline \text { Merchandise Inventory } & & 3,000 \\\hline\end{array}$$