The drop down options are (a) and (b)

Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System Matt Henry owns a business called Henry's Sporting Goods. His beginning inventory as or January 1, 20-, was n sooo, and his ending inventory as or Bee was $57,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory bent, 20 , Merchandise Inventory (Beginning Inventory) 45,000 Income Summary