Handbags Company Had 500 Units of Inventory on Hand at the End

Handbags Company had 500 units of inventory on hand at the end of the year.These were recorded at a cost of $18 each using the last-in,first-out (LIFO) method.The current replacement cost is $15 per unit.The selling price charged by Handbags Company for each finished product is $23.In order to record the adjusting entry needed under the lower-of-cost-or-market rule,the Cost of Goods Sold will be ________.

A) debited by $7,500
B) credited by $7,500
C) debited by $1,500
D) credited by $1,500