Suppose Dave’s Discount’s Inventory account showed a balance of $8,000 before the yearend adjustments. The physical count of goods on hand totaled $7,400. To adjust the accounts, Dave Marshall would make the following entry:

a.

Cost of goods sold Inventory

600

600

b.

Inventory Accounts receivable

600

600

c.

Accounts payable  Inventory

600

600

d.

Inventory Cost of goods sold

600

600