Uptown Department Store Uses the Perpetual Inventory System and Has

Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $598,000. The net realizable value is $670,000. Before any adjustments at the end of the period, the cost of goods sold account has a balance of $920,000. Which journal entry is required under U.S. GAAP?

A) debit Cost of Goods Sold for $50,000 and credit Inventory for $50,000
B) debit Inventory for $50,000 and credit Cost of Goods Sold for $50,000
C) debit Cost of Goods Sold for $22,000 and credit Inventory for $22,000
D) debit Inventory for $22,000 and credit Cost of Goods Sold for $22,000