The adjusting entry to record inventory shrinkage would include a debit to the cost of goods sold account in a perpetual inventory system.

Name: The adjusting entry to record inventory shrinkage would include a debit to the cost of goods sold account in a perpetual inventory system.
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In a perpetual inventory system, inventory shrinkage is recorded by debiting the Cost of Goods Sold account and crediting the Inventory account to reflect the loss of inventory not sold.

The Adjusting Entry to Record Inventory Shrinkage Would Include a Debit