Question: When net realizable value is lower than cost, and the loss method applying the lower-of-cost-and-net-realizable approach of recording the write-down is used, what account is

When net realizable value is lower than cost, and the loss method applying the lower-of-cost-and-net-realizable approach of recording the write-down is used, what account is credited?

A. Allowance to Reduce Inventory to NRV.

B. Inventory.

C. Cost of Goods Sold.

D. A loss account.

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