4. On January 1, 2018, KC Company carried inventory at the lower of cost or market on an aggregate basis. The cost of the inventory was $19,456 but the current market value is $18,500. Assuming the perpetual inventory system is used: (A) Prepare the journal entry needed to recognize the write down: Account Title Debit Credit (B) How will the write-down affect the elements of the financial statements? Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = 1 Decrease =D No Effect =N Assets Liabilities Equity Revenues Expenses Cash Net Income