Two Wheels Bicycle Depot caries 2 styles of bike, Regular and XL The company uses FIFO inventory cost method and it needs to evaluate whether the inventory value should be written down. Information for Regular Bikes follows: Beginning Inventory cost $56,000, Sales Price $88,000, estimated costs for delivery $2.000 Information for XL Bikes follows: Beginning Inventory cost $45.000, Sales Price $47,000, estimated costs for delivery $3,000. If Two Wheels has chosen the option by individual item, and write-downs are extremely rare, what will be the effect of this analysis? Oa. Adjustment of $1,000 as a debit to COGS b. Adjustment of $30,000 as a debit to Inventory Oc Adjustment of $1,000 as a credit to inventory Od. Adjustment of $30,000 as a debit to COGS QUESTION 9 Pegasus Toy Company uses LIFO, and Pegasus has chosen the Individual Item option for potential write downs. For their signature flying horse toy, they had beginning inventory at dost of $98,000, anticipated selling price of $106,000, completion costs of $3,200, a normal profit margin of 5%, and a replacement cost from their preferred manufacturer of $101,000. Based on this analysis, Pegasus should Oa. Make an adjusting entry to credit Inventory by $500 Ob. Make an adjusting entry to credit Inventory by $3,200 Oc. Make an adjusting entry to credit Inventory by $3,000 Od. Not make an adjusting entry