40. DB Sports reports the following information related to its inventory costs and current market values:

	Item		Cost		Market
	Apparel		$227,700		230,100
	Sports goods		327,800		308,200
	Shoes		163,400		165,200
	Total		$718,900		703,500

Assuming that DB Sports reports inventory at the Lower of Cost or Market to inventory as a whole, what entry would they make to record this adjustment? (This comes from my notes).

They would debit Cost of Goods Sold for $15,400 an credit Loss on Inventory for $15,400.

They would debit Inventory for $15,400 and credit Cost of Goods Sold for $15,400.

They would debit Cost of Goods Sold for $15,400 and credit Inventory for $15,400

They would debit Loss on Inventory for $15,400 and credit Cost of Goods Sold for $15,400.