7. Fay Inc. has an inventory balance of $76,000 on January 1, 2023. The following accounts and amounts were reported in Fay's unadjusted trial balance as at December 31, 2023: purchases $34,200, transportation-in $2,500, transportation-out $3,600, and purchase returns $5,100. Based on a physical count of inventory in its warehouse at year end, Fay had $68,000 of inventory on hand on December 31, 2023. The year-end adjusting entry for inventory would include a debit to cost of goods sold for: a) $43,200. b) $42,200. c) $39,600. d) $37,100. e) None of the above; no year-end adjusting entry for inventory is required.