At the end of $2020,$ Picture Plus, Inc., recorded its ending inventory at $$125,000$ based on a physical count. In $2021,$ the company discovered the correct inventory value at

end of $2020$ should have been $$200,000$ because it made a counting error. Upon discovery of this error in $2021,$ what correcting journal entry will Picture Plus make? Ignore

ome taxes.

A$.$ Debit inventory, credit revenue

B$.$ Debit retained earnings, credit inventory

C$.$ Debit inventory, credit retained earnings

D$.$ Debit supplies, credit retained earnings