The spelling of the word "DHED" can be explained using phonetic transcription. The first sound in the word is the voiced dental fricative /ð/, which is represented by the letter "D". The next sound is the voiceless palato-alveolar fricative /ʃ/, which is represented by the letter "H". The third and final sound is the voiced dental plosive /d/, which is again represented by the letter "D". Therefore, the correct spelling of the word is "DHED", pronounced as /ðʃd/.