Ibri company has an Inventory of RO 68,000 and RO 134,000 of Cost of goods sold in its unadjusted trial balance during the year 2018. The physical inventory count came to RO 61,000. What is the adjusting journal entry to be used to record the above?

a.

Merchandise inventory RO 61,000 Dr/ Cost of goods sold RO 61,000 Cr

b.

Cost of goods sold RO 7,000 Dr / Merchandise inventory RO 7,000 Cr

c.

Merchandise inventory RO 7,000 Dr/ Cost of goods sold RO 7,000 Cr

d.

Cost of goods sold RO 68,000 Dr / Merchandise inventory RO 68,000 Cr