In 2020, King Manufacturing signed a contract with a supplier to purchase raw materials in 2021 for $700,000. Before the December 31, 2020 balance sheet date, the market price for these materials dropped to $510,000. The journal entry to record this situation at December 31, 2020 will result in a credit that should be reported As a valuation account to inventory on the balance sheet. O As a current liability. As an appropriation of retained earnings. On the income statement