If the replacement cost of inventory is less than its historical cost, the company will write down the inventory by:
A) debiting Cost of Goods Sold and crediting Inventory.
B) debiting Inventory and crediting Cost of Goods Sold.
C) making a note in the financial statements only.
D) debit Inventory for replacement cost, credit Inventory for historical cost.
A) debiting Cost of Goods Sold and crediting Inventory.
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