Cypress Co

Multiple Choice

Cypress Co. has the following LIFO perpetual inventory records:
The current replacement cost of the ending inventory is $3,300. To apply the lower-of-cost-or-market rule, the journal entry would be:

A) Debit Cost of Goods Sold $2,950, credit Inventory $2,950,
B) Debit Inventory $2,950, credit Cost of Goods Sold $2,950,
C) Debit Cost of Goods Sold $1,000, credit Inventory $1,000
D) Debit inventory $1,000, credit Cost of Goods Sold $1,000