Assuming this is the first year of the business and the net realizable value of the inventory is $ 150,000 and the Average Low Cost is 220,000. The inventory adjustment entry under the provision method (indirect method) when periodic inventory is used will include a

Select one:

to. a credit to the inventory account for $ 70,000.

b. a debit to loss for inventory value p $ 70,000.

c. a debit to cost of goods sold for $ 70,000.

d. a debit to the provision account to reduce inventory to market by $ 70,000.