On December 1, West Capitol Auto enters into a purchase commitment to purchase 200 car tires for $120 each (a total of $24,000). The price of car tires is heavily dependent on the global price of rubber. As of December 31, the net realizable value of the tires to be purchased is $110 ($22,000 total). On January 31, West Capitol takes delivery of the tires when the net realizable value of the tires is $90 ($18,000) total. Assume that West Capitol made the necessary entry on 12/31 as part of their year-end accrual closing process. The entry on 1/31 includes which of the following:

Group of answer choices

Debit to loss accounts for $6,000

Debit to Inventory for $24,000

Debit to liability accounts of $2,000

Debit to Cash for $24,000

Credit to loss accounts for $4,000