The Madyson Dress Shop Uses the Perpetual Inventory System and Has

The Madyson Dress Shop uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $608,000. The net realizable value is $640,000. Before any adjustments at the end of the period, the cost of goods sold account has a balance of $880,000. What journal entry is required under IFRS?

A) No journal entry is required.
B) debit Cost of Goods Sold $20,000 and credit Inventory $20,000
C) debit Inventory $20,000 and credit Cost of Goods Sold $20,000
D) debit Cost of Goods Sold $12,000 and credit Inventory $12,000