Marble Toys Company's Accountant Discovers That Ending Inventory Is Overstated

Marble Toys Company's accountant discovers that ending inventory is overstated by $4,000. If the company uses the perpetual inventory method, which of the following is the journal entry to correct the error?

A)
$$\begin{array} { | l | l | l | l | } \hline \text { Cost of goods sold } & & \$ 4,000 & \\\hline & \text { Inventory } & & \$ 4,000 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Cost of goods sold } & & \$ 4,000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Purchases } & & \$ 4,000 \\\hline\end{array}$$
D) None of the above