Renoir, Inc

Renoir, Inc. has the following LIFO perpetual inventory records:
The current replacement cost of the ending inventory is $1,400. To apply the lower-of-cost-or-market rule, the journal entry would be:

A) debit Cost of Goods Sold $400, credit Inventory $400.
B) debit Inventory $400, credit Cost of Goods Sold $400.
C) No entry required, since the amount is not material.
D) No entry required, since historical cost is less than replacement.