Northern Town Equipment has four types of products in its inventory. As is procedure at the end of every year, Northern applies the rules under Iower-0f-cost or market (LCM) to its inventory. The adjusting entry based upon the information below would include a:

Product Quantity Cost Market

A 15 $7 $8

B 10 15 14

C 20 8 6

D 15 11 10

A. Debit to cost of goods sold $65

B. Credit to inventory $50

C. Debit to inventory $65

D. Debit to cost of goods sold $50

E. Debit to loss on impairment $65