When an adjusting entry is made to record inventory shrinkage,the Inventory account is debited and the Cost of Goods Sold account is credited.

Name: When an adjusting entry is made to record inventory shrinkage,the Inventory account is debited and the Cost of Goods Sold account is credited.
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When recording inventory shrinkage, the Cost of Goods Sold account is debited (increased) and the Inventory account is credited (decreased) to reflect the loss of inventory.

When an Adjusting Entry Is Made to Record Inventory Shrinkage,the