Sheridan Company uses a periodic inventory system and the average cost method. At December 31,2025 , the following information has been compiled for its finished goods irventory: After applying LCNRV, Sheridan, which uses the cost of goods sold method to record inventory write-downs, will make an entry debiting Inventory Loss for $500. debiting Cost of Goods Sold for $260. crediting Cost of Goods Sold for $1500. crediting Inventory for $500