Given the following information for the Tea Company:

Date	Cost	Market
December 31, 2014	$ 800	$ 800
December 31, 2015	1,000	940
December 31, 2016	1,100	1,060

Under the periodic system, if the allowance method of recording lower of cost or market is in use, which December 31, 2016 entry is not correct?

Allowance to Reduce Inventory to Market 20 Loss Recovery Due to Market Valuation 20

Inventory 1,100 Income Summary 1,100

Loss Due to Market Valuation 40 Allowance to Reduce Inventory to Market 40

Income Summary 1,000 Inventory 1,000