Uptown Department Store Uses the Perpetual Inventory System and Has

Multiple Choice

Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $610,000.The current replacement cost of the inventory is $598,000.The net realizable value is $670,000.The company uses LIFO.Before any adjustments at the end of the period,the cost of goods sold account has a balance of $930,000.Which journal entry is required under U.S.GAAP?

A) debit Cost of Goods Sold for $60,000 and credit Inventory for $60,000
B) debit Inventory for $60,000 and credit Cost of Goods Sold for $60,000
C) debit Cost of Goods Sold for $12,000 and credit Inventory for $12,000
D) debit Inventory for $12,000 and credit Cost of Goods Sold for $12,000