As of December 31, 2020 ABC determined that the cost of its inventory was $ 95,000.

The following assets were included in the aforementioned computation:

1. Goods sold to a customer that are in transit (FOB shipping point): $ 2,800

2. Assets of company XYZ (consignor) held on consignment by ABC (consignee). ABC will receive 7% commission when you sell them: $ 6,000

3. Goods of company ABC (consignor) that are under consignment in company WWW (consignee): $ 5,000

4. Goods purchased by ABC that are in transit (FOB destination): $ 10,000

5. Goods purchased by ABC that are in transit (FOB shipping point): $ 4,000

What is the necessary adjustment to correct the inventory account balance as of 12/31/2020? Select one:

to. DR $ 76,200

b. DR $ 23,800

c. CR $ 18,800

d. CR $ 27,800