When a Company Uses the Perpetual Inventory Method,which of the Following

Multiple Choice

When a company uses the perpetual inventory method,which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

A) Debit Purchases and credit Inventory
B) Debit Inventory and credit Purchases
C) Debit Cost of goods sold and credit Inventory
D) Debit Inventory and credit Cost of goods sold