The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $69,000. Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system) 1,000 O A. Merchandise Inventory Cost of Goods Sold 1,000 OB. Cost of Goods Sold Shrinkage Expense 1,000 1,000 OC. Cash Merchandise Inventory 1,000 1,000 1,000 OD. Cost of Goods Sold Merchandise Inventory 1,000 N Activate Windows