Cappella co. made the following errors in counting its year-end physical inventories:
2000 600,000 overstatement
2001 108,000 understatement
2002 90,000 overstatement
The entry to correct the accounts at the end of 2002 is:

a) retained earnings 48,000
Cost of goods sold 42,000
Inventory 90,000

b)retained earnings 18,000
Cost of goods sold 72,000
Inventory 90,000

c)inventory 90,000
Cost of goods sold 18,000
Retained earning 72,000

d) cost of goods sold 198,000
Retained earning 108,000
Inventory 90,000