The Council of the Blind Store Has Ending Inventory with a Historical

The Council of the Blind Store has ending inventory with a historical cost of $630,000.Assume the store uses the perpetual inventory system.The current replacement cost of the inventory is $608,000.The net realizable value is $650,000.Before any adjustments at the end of the period,the cost of goods sold account has a balance of $900,000.What journal entry is required under U.S.GAAP?

A) debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000
B) debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000
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