10 Hide Question 7 Viow Policies Current Attempt in Progress Assuming the company uses the earnings approach for revenue recognition, in a perpetual system, If the accounting records shows ending inventory balance of $21700 and a physical count shows a balance of $20000, it is necessary to Odebit Sales Returns and Allowances and credit Merchandise Inventory for $1700 detit Cost of Goods Sold and credit Sales Returns and Allowances for $1700 debit Merchandise invertory and credit Cost of Goods Sold for $1700 debt Cost of Goods Sold and credit Merchandise Inventory for $1700. Attempts of 1 used Submit