Help Save & Exit Submit Negredo Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products Surgical Equipment Surgical Supplies 370 400 07.30 Number of units in inventory Per unit Selling Price Cost Replacement cost Cost to sell 345 255 325 64 Normal gross profit ratio 30% Normal gross profit ratio is expressed as a percentage of selling price Negredo adjusts an allowance account at year-end to record net realizable value adjustments to its inventory All products are reported at cost at the beginning of the year The entry at year-end will Multiple Choice O increase liabilities by 53,700 O O reduce equity by 53,700 O reduce equity by $31000 O reduce assets by $31000