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Hala Ltd has included inventory in its financial statements at 30 November 20X3 ot retail price of 61.560 The company earns a gross margin of

Hala Ltd has included inventory in its financial statements at 30 November 20X3 ot retail price of 61.560 The company earns a gross margin of 35% on its sale

What journal entry is required to correct this error?

A. Debit Cost of sales 21,546; Credit Inventory 21.546

B. Debit Inventory 21,546; Credit Cost of sales 21,546

C. Debit Inventory 15.960; Credit Cost of sales 15,960

D. Debit Cost of sales 15,960; Credit Inventory 15,960

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