On April $1,$ a company purchased two units of inventory, A and B$.$ The cost of unit A was $$655,$ and the cost of unit B was $$560.$ On April $30,$ the company had not sold the inventory. The net realizable value of unit A was now $$675$ while the net realizable value of unit B was $$485.$ The adjusting entry associated with the lower of cost and net realizable value on April $30$ will be:

$\backslash$table$[[$Event$,$Account Title,Debit,Credit$],[1.,\backslash$table$[[$Cost of Goods Sold$],[$Inventory$]],55,55],[2.,\backslash$table$[[$Inventory$],[$Cost of Goods Sold$]],55,55],[3.$ Cost of Goods Sold,$75,75,],[4.$ Inventory,$75,75,]]$

Multiple Choice

Option $1$

Option $2$

Option $3$

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