QUESTION 4 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 debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200 debit to Merchandise Inventory and a credit to Cost of Goods Sold for $3,200 debit to Cost of Goods Sold and a credit to Cash for $3,200 debit to Merchandise Inventory and a credit to Cash for $3,200