Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of $451,000, but a complete year-end physical inventory indicated goods on hand costing only $444,300. Jayson should:

a.Reduce the balance in the Inventory controlling account and record a current liability, both in the amount of $6,700.

b.Reduce the balance in its Inventory controlling account and inventory subsidiary ledger by $6,700.

c.Record a $6,700 current liability.

d.Reduce its cost of goods sold by $6,700.