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 inventory: After applying LCNRV, Sheridan, which uses the cost of goods sold methos 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