Sandhill Company uses the perpetual inventory system. It began operations in October. October throughi December, the accounting information system shows that purchases of $70800 were made. Sandhill returned goods with a cost of $3800. Inventory with a cost of $53700 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 $10900 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 $1400. $3800 $2400. 54800