The general ledger shows a balance of $66,700 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $64,100. (Assume a perpetual inventory system.) The adjusting entry includes a O A. debit to Merchandise Inventory and a credit to Cash for $2,600 OB. debit to Cost of Goods Sold and a credit to Merchandise Inventory for $2,600 O c. debit to Cost of Goods Sold and a credit to Cash for $2,600 OD. debit to Merchandise Inventory and a credit to Cost of Goods Sold for $2,600