Blue Inc. uses LIFO inventory costing. At January 1, 2020, inventory was $217,208 at both cost and market value. At December 31, 2020, the inventory was $287,675 at cost and $261,060 at market value. Use an allowance account. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.

A. Dr Cost of Goods Sold $26,615

Cr Allowance to Reduce Inventory to Market $26,615

B.Dr Loss Due to Market Decline of Inventory $26,615

Cr Allowance to Reduce Inventory to Market $26,615

Explanation:

(a) Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $26,615

Cr Allowance to Reduce Inventory to Market $26,615

($287,675 - $261,060)

(b) Preparation of the necessary December 31 entry under Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $26,615

Cr Allowance to Reduce Inventory to Market $26,615

($287,675 - $261,060)

its kinda hard to answer this when we dont have all the information that we need.

​participate in networking opportunities that allow you to get to know potential clients, other entrepreneurs, influential people in your community, etc. focus on doing everything you can to cultivate posting word of mouth advertisin