At the end of the year, assume the balance of Inventory is $$110,025$ and physical inventory on hand is $$106,620.$ The adjusting entry to journalize shrinkage will be a

a$.$ $$3,405$ debit to Inventory and a $$3,405$ credit to Cost of Goods Sold.

b$.$ $$216,645$ debit to Cost of Goods Sold and a $$216,645$ credit to Inventory.

c$.$ $$3,405$ debit to Cost of Goods Sold and a $$3,405$ credit to Inventory.

d$.$ $$110,025$ debit to Inventory and a $$110,025$ credit to Cost of Goods Sold.