When the Physical Count of RNA Company Inventory Had a Cost

When the physical count of RNA Company inventory had a cost of $3,400 at year end and the unadjusted balance in Merchandise Inventory was $3,500, RNA will have to make the following entry:

A) $\begin{array} { l }\text {Cost of Goods Sold. }&100 \\ \text {Merchandise Inventory }&&100 \\\end{array}$

B) $\begin{array} { l } \text { Merchandise Inventory.}&100 \\ \text { Cost of Goods Sold}&&100 \\\end{array}$

C) $\begin{array} { l }\text { Income Summary. }&100 \\ \text { Merchandise Inventory}&&100 \\\end{array}$

D) $\begin{array} { l }\text { Cost of Goods Sold}&3,500 \\ \text {Merchandise Inventory }&&3,500 \\\end{array}$