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?

Question

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When using the perpetual inventory method, the entry to adjust inventory to lower-of-cost-or-market is to debit Cost of goods sold and credit Inventory to recognize the loss in value. This adjustment is made at the end of the accounting period to ensure that inventory is reported at the lower of its cost or net realizable value. Option A and B do not reflect the decrease in the inventory value, and option D is not correct as inventory is debited only when it increases.

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