Mariah Company has inventory at the end of the year with a historical cost of $95,000. Mariah Company uses the perpetual inventory system. Under the LCM rule, the current replacement cost is $75,600
Under U.S. GAAP, the journal entry to record the write-down to LCM will:
A) debit Cost of Goods Sold for $19,400 and credit Inventory for $19,400.
B) debit Cost of Goods Sold for $19,400 and credit Purchases for $19,400.
C) debit Inventory for $19,400 and credit Cost of Goods Sold for $19,400.
D) debit Purchases for $19,400 and credit Cost of Goods Sold for $19,400.
A
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