The Following Entry Is Taken from the Journal of a Merchandising

The following entry is taken from the journal of a merchandising company:
$\begin{array}{|l|r|r|}\hline \text { Cost of Goods Sold } & 6,000 & \\\hline \text { Merchandise Inventory } & & 6,000 \\\hline\end{array}$
What is the effect of this entry on the company's financial statements?

A) Assets and stockholders' equity increase.
B) Assets and liabilities increase.
C) Assets and stockholders' equity decrease.
D) Assets decrease and stockholders' equity increases.