In 2025, 3 M Manufacturing signed a contract with a supplier to purchase raw materials for delivery in 2026 for $700,000, Before the December 31,2025 balance sheet date, the market price for the materials dropped to $510.000. The journal entry to record this decline in cost at December 31, 2025, will result in a credit that should be reported on the income statement. as a valuation account to Inventory on the balance sheet. as an appropriation of retained earnings on the balance sheet. as a current liability on the balance sheet