(30)All of the following statements regarding inventory shrinkage are true except :

• A. Inventory shrinkage can be caused by theft or deterioration.
• B. Inventory shrinkage is determined by comparing a physical count of inventory with recorded inventory amounts.
• C. Inventory shrinkage is recognized by debiting an operating expense.
• D. Inventory shrinkage is recognized by debiting Cost of Goods Sold.
• E. Inventory shrinkage refers to the loss of inventory.