At 12/31/20, the end of Sandhill Company's first year of business, inventory was $6,600 and $5,100 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Original Cost Replacement Item Per Unit Cost A $0.55 $0.40 B 0.50 0.45 0.90 0.95 D 0.60 0.50 E 0.70 0.65 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. Ther are 1,400 units of each item in the 12/31/21 inventory. Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Sandhill uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation 12/31/20 Loss Due to Decline of Inventory to Market Allowance to Reduce Inventory to Market Debit 1500 Credit 1500 Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Item Original Cost Per Unit Replacement Cost A $0.55 $0.40 +A $ Net Realizable Value EA $ Net Realizable Value Less Normal Profit B L 0.50 0.45 090 0.95 Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Item Original Cost Per Unit Replacement Cost Net Realizable Value Net Realizable Value Less Normal Profit A B $0.55 $0.40 0.50 0.45 C 0.90 0.95 D 0.60 0.50 E +A 0.70 0.65 +A +A Credit Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit 12/31/21 Allowance to Reduce Inventory to Market Cost of Goods Sold (To record cost of goods sold) 12/31/21 Loss Due to Decline of Inventory to Market Allowance to Reduce Inventory to Market (To record profit/ loss)