The General Ledger Shows a Balance of $66,400 in the Merchandise

The general ledger shows a balance of $66,400 in the Merchandise Inventory account at the end of the period.The physical inventory count shows inventory of $63,000.The adjusting entry includes a ________.

A) debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,400
B) debit to Cost of Goods Sold and a credit to Cash for $3,400
C) debit to Merchandise Inventory and a credit to Cost of Goods Sold for $3,400
D) debit to Merchandise Inventory and a credit to Cash for $3,400