At the end of the year, assume the balance of Inventory is $110,225 and physical inventory on hand is $107,220. The adjusting entry to journalize shrinkage will be a a. $217,445 debit to Cost of Goods Sold and a $217,445 credit to Inventory. b. $110,225 debit to Inventory and a $110,225 credit to Cost of Goods Sold. c. \$3,005 debit to Inventory and a \$3,005 credit to Cost of Goods Sold. d. \$3,005 debit to Cost of Goods Sold and a \$3,005 credit to Inventory