Your client, Jackson's Jewels, is using periodic inventory tracking. He is counting inventory each month. At the end of last month, his inventory was worth $50,750. At the end of this month, the inventory was worth $65,375.57 What is the entry that you must make?

1. Debit COGS $14,625.57; Credit inventory $14,625.57

2. Debit inventory $65,375.57; Credit COGS $65,375.57

3. Debit inventory $14,625.57, Credit COGS $14,625.57

4. Debit inventory $50,750; Credit COGS $65,375.57