Your client has an inventory balance in the general ledger of $$1,386,000$

as of $12/31/$XX$.$ Per a physical count of inventory, the balance should be

$$1,361,000.$ What would the journal entry be to record the

adjustment?

a$.$Debit Inventory for $$1,361,000$ and Credit Inventory Adjustment for

$$1,361,000$

b$.$Debit Inventory Adjustment for $$1,361,000$ and Credit Inventory for

$$1,361,000$

c$.$Debit Inventory for $$25,000$ and Credit Inventory Adjustment for $$25,000$

d$.$Debit Inventory Adjustment for $$25,000$ and Credit Inventory for $$25,00$