Suppose Dave’s Discount’s Merchandise Inventory account showed a balance of $8,000 before the year-end adjustments. The physical count of goods on hand totaled $7,400. Dave uses a perpetual inventory system. To adjust the accounts, which entry would the company make?

Date Accounts and Explanation Deblt Credit Cost of Goods Sold . 600 Merchandise Inventory 600 b. Merchandise Inventory 600 Accounts Receivable 600 . Accounts Payable 600 Merchandise Inventory 600 d. Merchandise Inventory 600 Cost of Goods Sold 600