Company A has inventory at the end of the year with a cost of $75,000. Under the LCM rules, the value of the inventory is $72,600.The journal entry to record the write-down to LCM will:

• increase cost of goods sold and increase ending inventory.
• increase cost of goods sold and decrease ending inventory.
• decrease cost of goods sold and decrease ending inventory.
• decrease cost of goods sold and increase ending inventory.