Hiatt Hurricane Preparedness Corporation accounts for its inventory using LIFO and is applies the LCM rule. The company has compiled the following information regarding the cost, replacement cost, net realizable value (NRV), and NRV less a normal profit margin for the company's inventory items: Inventory Item Cost Designated Market Value Basic Kits $40,000 $52,000 Deluxe Kits 50,000 45,000 Gold Standard Kits 25,000 20,000 If Hiatt applies LCM to the individual items in its inventory and uses the Loss method to adjust cost to LCM, what adjusting entry will the company make at December 31, 20X1? Select answer from the options below Debit Inventory Loss, $5,000; Credit Inventory, $5,000 Debit Inventory Loss, $2,000; Credit Inventory, $2,000 Debit Cost of Goods Sold, $5,000; Credit Inventory, $5,000 Debit Inventory, $2,000; Credit Inventory Loss, $2,000