When counting inventory, a manager discovered that there were four radios missing. Each radio cost $12.00. Which of the following journal entries is correct when making the inventory adjustment?
A.
Debit COGS, Credit Merchandise Inventory
B.
Debit Merchandise Inventory, Credit COGS
C.
Debit Operating expense, Credit Merchandise Inventory
D.
Debit Merchandise Inventory, Credit Operating expense