The inventory account balance is $50,000. An actual count of inventory reveals that actual inventory is $43,000. Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system)

A.

a $7,000 credit to Merchandise Inventory

B.

a $50,000 debit to Cost of Goods Sold

C.

a $43,000 credit to Merchandise Inventory

D.

a $7,000 credit to Cost of Goods Sold