At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs:
Purchased in August: 30 units at $750 per unit.
Purchased in November: 30 units at $700 per unit.
A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand.
Assuming that Anderson uses the LIFO flow assumption, it should record this inventory shrinkage by:
a. Debiting Cost of Goods Sold $7,000.
b. Crediting Cost of Goods Sold $7,500.
c. Debiting Cost of Goods Sold $7,500.
d. Crediting Cost of Goods Sold $7,000