Mariah company has inventory at the end of the year with a historical cost of​ $95,000. mariah company uses the perpetual inventory system. under the lcm​ rule, the current replacement cost is​ $75,600. under u.s.​ gaap, the journal entry to record the write−down to lcm​ will:
a. debit cost of goods sold for​ $19,400 and credit purchases for​ $19,400.
b. debit cost of goods sold for​ $19,400 and credit inventory for​ $19,400.
c. debit purchases for​ $19,400 and credit cost of goods sold for​ $19,400.
d. debit inventory for​ $19,400 and credit cost of goods sold for​ $19,400.