A company has four types of products in its inventory. The company applies the rules under lower of cost and net realizable value to its inventory at the end of each year as shown below:ProductQuantityCostNet Realizable Value A15$7 $8 B10 15 14 C20 8 6 D15 11 10 The year-end adjustment based upon the information above would include a:
A. Credit to Inventory $50.
B. Debit to Cost of Goods Sold $65.
C. Debit to Inventory $65.
D. Debit to Cost of Goods Sold $50.
Answer: B
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