Abel Company Must Write Down Its Inventory by $30,000 to the Net

Multiple Choice

Abel Company must write down its inventory by $30,000 to the net realizable value of $450,000 at December 31,2019.What is the effect of this write-down on the year 2019 financial statements?

A) Decrease cost of goods sold.
B) Decrease ending inventory on the balance sheet.
C) Increase pretax income.
D) Decrease accounts payable.