Suppose Dave’s Discount’s Merchandise Inventory account showed a balance of $8,000 before the year-end adjustments. The physical count of goods on hand totaled $7,400. Dave uses a perpetual inventory system. To adjust the accounts, which entry would the company make?

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Date a. Accounts and Explanation C. Cost of Goods Sold Merchandise Inventory b. Merchandise Inventory Accounts Receivable Accounts Payable Merchandise Inventory d. Merchandise Inventory Cost of Goods Sold Debit 600 600 600 600 Credit 600 600 600 600