At the end of the month Main Ltd. determined that the cost of goods that had been sold during the month was $125,000. How might this information be recorded?

An increase in expenses of $125,000 and an increase in accounts payable of $125,000

An increase in inventory of $125,000 and a decrease in cash of $125,000.

None of the others alternatives are correct

A decrease in inventory of $125,000 and an increase in expenses of $125,000

The information is not recorded as no economic event had taken place.