Applying the LMC, NeCo determines that as of December 31, 20X3, merchandise that originally cost $46,300 is not $43,500 a the market.

NeCo determines that the loss is not material enough to warrant disclosure as a line item on tis income statement. Therefore it should...

a) make no entry but disclose the loss in a note on the financial statement

b) make no entry and make no disclosure

c) make an entry to reduce the retained earnings

d) make an entry to increase cost of goods sold.