Company ABC purchases inventory on account during the period, costing $$85,000.$ At year$-$end, it's determined that $15\%$ of the inventory is obsolete with a net realizable value of only $$3,000.$ What is the necessary adjusting entry?

A$)$ Debit Cost of Goods Sold $$12,750$; Credit Inventory $$12,750$

B$)$ Debit Loss on Obsolete Inventory $$12,750$; Credit Inventory $$12,750$

C$)$ Debit Cost of Goods Sold $$72,250$; Credit Inventory $$72,250$

D$)$ Debit Loss on Obsolete Inventory $$79,750$; Credit Inventory $$79,750$

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