Pharoah Company uses the perpetual inventory system. It began operations in October. October through December, the accounting information system shows that purchases of $$68800$ were made. Pharoah returned goods with a cost of $$3900.$ Inventory with a cost of $$53900$ was sold during the three months. These were the only inventory transactions during the period. A physical count of inventory at the end of December reported total inventory of $$10300$ remains on hand. An adjustment to bring the perpetual inventory count in line with the physical count would include a debit to Inventory Over and Short $($or Cost of Goods Sold$)$ for

$$ $$700.$

$$1400.$

$$3200.$

$$1600.$