The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to record the new merchandise inventory balance assuming the company uses the periodic inventory system would be?

• a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.

• a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.

• a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.

• a debit to Income Summary of 35,000 and a credit to Merchandise Inventory for $35,000.