Zenith Company's Merchandise Inventory account at year-end has a balance of $91,820, but a physical count reveals that only $90,450 of Inventory exists. The adjusting entry to record this $1,370 of inventory shrinkage is: Multiple Choice 26 1,370 cost of goods sold Merchandise inventory 370 1,370 Merchandise inventory Inventory shrinkage expande 2.370 90,450 Coat of goods sold Merchandise inventory 90.450