Answer:
Cost of goods sold $1,370
Merchandise Inventory $1,370
Step-by-step explanation:
The cost of goods sold will be debited and merchandise inventory will be credited for the amount of $1,370 ($91,820 - $90,450). Shrinkage expenses is included in the cost of goods sold account.
Journal entry
Journal Entry Debit Credit
Cost of goods sold $1,370
Merchandise Inventory $1,370
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