Kim's Retail Had 500 Units of Inventory on Hand at the End

Kim's Retail had 500 units of inventory on hand at the end of the year.These were recorded at a cost of $17 each using the last-in,first-out (LIFO) method.The current replacement cost is $14 per unit.The selling price charged by Kim's Retail for each finished product is $24.In order to record the adjusting entry needed under the lower-of-cost-or-market rule,the Merchandise Inventory will be ________.

A) debited by $7,000
B) credited by $7,000
C) debited by $1,500
D) credited by $1,500