21. Assume that Krautwortz uses the indirect method when recording inventory at market. The allowance account has a credit balance of $300 before any adjustments necessary on December 31, 2006, and there are 300 units of Product A and 400 units of Product B in ending inventory. What entry should Krautwortz make on December 31, 2006? Innentony USSAiow Nat Inuert a. Loss Due to Market Decline of Inventory.......2,600 Allowance to Reduce Inventory to Market......2,600 b.Loss Due to Market Decline of Inventory...2,300 Allowance to Reduce Inventory to Market......2,300 c. Loss Due to Market Decline of Inventory.......2,000 Allowance to Reduce Inventory to Market......2,000 d. Loss Due to Market Decline of Inventory........ 1,700 Allowance to Reduce Inventory to Market...... 1,700 21. Assume that Krautwortz uses the indirect method when recording inventory at market. The allowance account has a credit balance of $300 before any adjustments necessary on December 31, 2006, and there are 300 units of Product A and 400 units of Product B in ending inventory. What entry should Krautwortz make on December 31, 2006? Innentony USSAiow Nat Inuert a. Loss Due to Market Decline of Inventory.......2,600 Allowance to Reduce Inventory to Market......2,600 b.Loss Due to Market Decline of Inventory...2,300 Allowance to Reduce Inventory to Market......2,300 c. Loss Due to Market Decline of Inventory.......2,000 Allowance to Reduce Inventory to Market......2,000 d. Loss Due to Market Decline of Inventory........ 1,700 Allowance to Reduce Inventory to Market...... 1,700