Mineral Makers $($MM$)$ Company keeps its inventory records using a perpetual system. At December $31,2022,$ the unadjusted balance

in the inventory account is $64,000.$ Through a physical count on December $31,2022,$ MM determines that its actual merchandise

inventory at year$-$end is $62,500.$ Which of the following is true regarding the statement of financial position and the income

statement of MM at December $31,2022?$

Inventory is increased and cost of goods sold is decreased by $1,500.$

Inventory is increased and cost of goods sold is increased by $1,500.$

Inventory is decreased and cost of goods sold is decreased by $1,500.$

Inventory is decreased and cost of goods sold is increased by $1,500.$