=+5. As of December 31, 2008, Ames Corporations physical inventory was $275,000 and its book inventory was

$290,000. The effect ofthe inventory shrinkage on the accounts is:

A. to increase cost ofmerchandise sold and inventory by $15,000.

to increase cost ofmerchandise sold and decrease inventory by $15,000.

to decrease cost ofmerchandise sold and increase inventory by $ 15,000.

to decrease cost of merchandise sold and inventory by $15,000.

SI B.

jig c.

D.