10) The general ledger shows a balance of $66,600 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $63,400. (Assume a perpetual inventory system.) The adjusting entry includes a A) debit to Cost of Goods Sold and a credit to Cash for $3,200 B) debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200 C) debit to Merchandise Inventory and a credit to Cost of Goods Sold for $3,200 D) debit to Merchandise Inventory and a credit to Cash for $3,200